Insurance Europe has today published an Insight Briefing on why EU-wide compulsory insurance schemes only work in very specific circumstances. This is because there needs to be sufficient underwriting information, as well as enough similarity in the risks being covered and enough insurance capacity in the market.
The Briefing explains why inappropriate compulsory schemes are very likely to be counterproductive and actually make life more difficult for individuals, businesses and insurers.
The Briefing demonstrates that compulsory liability insurance for robots and artificial intelligence (AI) would not work. This is due to a lack of data on the risks, not enough similarity in the risks presented by different types of robots and AI, and because the insurance market in this area is still developing.