Government action needed to ensure insurance against major hacking of driverless vehicles, experts warn

Date:
November 3, 2021
Source:
University of Exeter
Summary:
Government action is needed so driverless vehicles can be insured
against malicious hacks which could have potentially catastrophic
consequences, a study says.



FULL STORY ========================================================================== Government action is needed so driverless vehicles can be insured against malicious hacks which could have potentially catastrophic consequences,
a study says.


==========================================================================
The software in driverless vehicles will make it possible for them
to communicate with each other. It is being used and tested on public
transport around the world, and is likely to be available to private
vehicles in the future.

This technology can help improve transport safety, but hacking could
result in accidents and damage to fleets of vehicles, financial loss,
deaths and personal injury.

Experts have called for the creation of a national compensatory body in
the UK offering a guarantee fund from which victims may seek redress.

Traditional vehicle insurance wouldn't cover the mass hacking of
driverless cars, and an incident like this could cost the industry tens
of billions of pounds.

Hackers could target vehicles via their regular software updates. Without appropriate insurance systems driverless vehicles could pose too great
a danger to road users if the vehicles suffered serious software defects
or were subject to malicious hacking. Existing systems of liability are deficient or inapplicable to vehicles which operate without a driver
in control.

The research, published in the journal Computer Law & Security Review,
was carried out by Matthew Channon from the University of Exeter and
James Marson from Sheffield Hallam University.

Dr Channon said: "It's impossible to measure the risk of driverless
vehicles being hacked, but it's important to be prepared. We suggest the introduction of an insurance backed Maliciously Compromised Connected
Vehicle Agreement to compensate low cost hacks and a government backed guarantee fund to compensate high-cost hacks.

"This would remove a potentially onerous burden on manufacturers and would enable the deployment and advancement of driverless vehicles in the UK.

"If manufacturers are required to pick up the burden of compensating
victims of mass-hacking, major disruptions to innovation would be
likely. Disputes could result in litigation costs for both manufacturer
and insurer.

"Public confidence requires a system to be available in the event
of hacking or mass hacking which compensates people and also does not
stifle or limit continuing development and innovation." Dr Marson said,
"The UK intends to play a leading role in the development and roll-out
of connected and autonomous vehicles. It was the first country to
establish a statutory liability framework for the introduction of
autonomous vehicles onto national roads. If it wishes to continue
playing a leading role in this sector, it has the opportunity by
creating an insurance fund for victims of mass-hacked vehicles. This
would not only protect road users and pedestrians in the event of
injury following a hacking event, but would also give confidence
to insurers to provide cover for a new and largely untested market." ========================================================================== Story Source: Materials provided by University_of_Exeter. Note: Content
may be edited for style and length.


========================================================================== Journal Reference:
1. Matthew Channon, James Marson. THE liability for cybersecurity
breaches
of connected and autonomous vehicles. Computer Law & Security
Review, 2021; 43: 105628 DOI: 10.1016/j.clsr.2021.105628 ==========================================================================

Link to news story: https://www.sciencedaily.com/releases/2021/11/211103105018.htm

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