Self-driving cars, perhaps more correctly referred to as connected and autonomous vehicles, are already here in various forms. Connected vehicles are those which are able to communicate with their surroundings providing information on road, traffic and weather conditions. The next level is automation where the vehicle uses its connection to assist the driver, examples include autonomous emergency braking, adaptive cruise control and park assist. Testing is now also well under way for vehicles that take full control from start to finish.
This paper summarises some of the major issues and opportunities that the shift towards self-driving cars poses for government, the insurance industry and the wider economy.