Allianz insures S'pore's first fully driverless bus amid challenges posed by autonomous vehicles
The move marks a milestone in what is a nascent area for the insurance sector.
SINGAPORE - The local arm of German insurer Allianz has made a foray into the autonomous vehicle (AV) space, providing insurance coverage for
Singapore's first fully driverless bus operated by WeRide at the Resorts World Sentosa (RWS) integrated resort.
Allianz Insurance Singapore told The Straits Times that the policy, which is a first for the insurer, covers damage caused to the driverless bus, including the vehicle's cameras and sensors.
The policy also covers any compensation that WeRide, which is headquartered in Guangzhou, may need to pay for property damage, bodily injury or death caused by the self-driving bus, commonly referred to as third-party liability.
The move marks a milestone in what is a nascent area for the insurance sector, and it comes as the Government prepares to deploy autonomous public shuttles within housing estates to strengthen the public transport network.
All AVs in Singapore must already be covered by third-party liability insurance before they can be used or tested on roads here.
This comes under a set of road traffic rules introduced in 2017 to better regulate AV trials, which also stipulate duties to notify the authorities of malfunctions or accidents, and to record key data like speed and camera footage for investigations.
What is different is that Allianz Insurance Singapore is insuring WeRide's AV service, which the Land Transport Authority (LTA) has approved to operate without any human safety personnel on board.
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The eight-seater driverless bus, which plies a fixed 1.2km loop within RWS, is being monitored remotely.
Asked if such remote operations come with a higher risk, Allianz Insurance Singapore chief operating officer Ong Biying said the difference is 'not that significant' in the insurer's view.
'There is an operator off-site watching the vehicle and ready to do an emergency stop... So there is supervision,' she said. This human supervision exists, regardless of whether the individual is physically inside the vehicle or located elsewhere, she added.
Ms Ong also cited the safety framework imposed by LTA and the extensive trial period before the removal of the safety officer as factors that gave the insurer confidence in underwriting WeRide's fully driverless operations.
LTA requires AVs to be assessed at a test centre before they are deployed to ensure they can navigate safely on roads. The management of AV operations is also reviewed, among other things.
Ms Ong noted that Allianz's new policy is specific to WeRide's self-driving service within RWS, and the risks will need to be re-evaluated for different vehicle types on various routes.
WeRide has touted a zero-accident record for its RWS shuttle service since it started in June 2024.
Ms Ong said Allianz Insurance Singapore applied the same models it uses for its regular motor insurance plans when underwriting the WeRide policy.
But an extensive assessment was done on the operational and engineering aspects of the AV firm's shuttle service here.
This included carrying out checks on the safety measures in place, maintenance protocols, and the market value of various components like the sensors to factor in replacement costs.
'We are still very new to this. So there will need to be constant conversations, and we may need to tweak things along the way,' Ms Ong added.
Acknowledging the evolving nature of the AV sector, she flagged the need to build up related expertise across the wider ecosystem, including among vehicle workshops and insurance investigators. For instance, cybersecurity risks are a concern, and this is an area that Allianz is also looking into.
Local AV firm Moovita, which operates driverless campus shuttle services at Ngee Ann Polytechnic in partnership with ComfortDelGro, said it has faced challenges in securing coverage due to insurers' limited understanding of AV technology.
But this has been countered by the fact that there is still a safety driver on board its buses.
Today, MooVita holds motor insurance from Liberty Insurance for its Singapore operations, as well as product liability insurance from Aon, which protects it against claims stemming from issues such as defective sensors or software bugs.
Moovita's buses are allowed to operate autonomously only within Ngee Ann Polytechnic's campus, and they must be driven manually on public roads.
PHOTO: LIANHE ZAOBAO
As the company aims to go fully driverless, it is in the process of finding a suitable insurance partner that can provide coverage for self-driving operations with and without a safety operator on board.
'We do anticipate that the premium may be higher when we start to remove the safety driver. But hopefully when the product matures with more data, the premium can be brought down to a level equivalent to current insurance products,' said a Moovita spokesman.
Some local insurers, meanwhile, remain cautious about AVs.
Mr Alvino Kor, Singlife's senior vice-president for general insurance, said his firm is keeping a close watch to understand the potential opportunities and risks.
Income Insurance's head of motor distribution, Ms Cecilia Siah, said AVs add a layer of complexity when determining fault in accidents, especially when distinguishing whether it is due to human error, system failure or a potential cyberattack.
For self-driving vehicles, liability is also increasingly shifting towards manufacturers and software developers, she added. This is unlike traditional motor insurance, which places liability primarily on the driver.
Hence, Ms Siah said insurers will need to collaborate with vehicle manufacturers, technology experts and regulators to establish standardised protocols for liability assessment.
'Traditional risk factors like driver age and driving history become less relevant, while new factors like vehicle software version, safety record and driving conditions must be considered,' she noted.
There are also implications for the legal sector.
Mr Anthony Wee, managing director at Titanium Law Chambers, said he foresees a higher likelihood of cross-border litigation, given that the manufacturer of the vehicle, software and components may originate from the different countries.
The insurance lawyer also believes that 'the whole insurance industry itself has to change'.
While he expects fewer accidents with more AVs on the road, which could in turn lower insurance costs and premiums, Mr Wee cautioned that any AV accident that happens will likely be 'catastrophic'.
'Only a system failure would give rise to such an accident. And the problem is this failure can come in various forms, including loss of signal or hacking,' he said.
'What happens if there is a failure to update the software, or if the software engineers themselves were at fault? Who is going to be liable? There are more questions than there are answers,' he added.
Mr Wee said Parliament needs to look into these issues. He also called for a review committee comprising insurance and legal practitioners to plug gaps in existing laws.
Mr Raphael Louis, managing director at Ray Louis Law Corporation, raised a similar point on the need to amend Singapore's criminal laws, which are today designed around human drivers.
'Can an AV operator be charged in court with negligence or causing hurt? These need to be determined,' he said.
Despite the uncertainties, Ms Ong said Allianz wanted to venture into AV insurance, as it felt this was an area where it had expertise in, and it supports the motor insurer's ambitions in Singapore.
Asked if the insurer will be in involved with the autonomous public shuttles set to be rolled out in Punggol in the fourth quarter of 2025, Ms Ong said: 'We hope to, and we will be excited to be a part of it, if there is an opportunity.'
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