Neha Jain, James O’Reilly & Nicholas Silk
In 2020 Google plans to launch a self-driving car which has already driven nearly one million miles without causing an accident; it doesn’t get tired and irritable, swerve into lamp posts or require a driving test. The in-built chauffeur comes in the form of a rotating LIDAR laser taking 1.3 million recordings per second, and it’s a better driver than you. By eliminating the element of human blunders, driverless cars are forecast to reduce motor accidents by up to 90% in the US according to McKinsey. That might imply a substantial impact on the insurance industry, with liability potentially shifting to car manufacturers. Such developments would pose challenging questions for the PRA in regulating UK insurance firms.