Munich Re America joins research project for connected and automated vehicles

Munich Reinsurance America, Inc. announced on Thursday that it had joined the University of Michigan’s Mobility Transformation Center (MTC) Affiliates Program — part of a major research partnership of industry, government, and academia that is exploring a commercially viable system of connected and automated vehicles.

“We are excited to be a part of this initiative, as we believe there are enormous potential benefits for consumers and business from the autonomous and connected vehicle technologies that are being researched and tested through the MTC,” said Tony Kuczinski, president and CEO of Munich Re America, in a statement. “These vehicle technologies have the potential to save lives, reduce accidents, provide fuel economies, and improve road efficiencies.”

Related: Potential economic benefit of driverless cars in Canada $65 billion annually

“Connected and automated vehicles hold the potential to dramatically improve the safety, sustainability, and accessibility of our mobility system,” added Dr. Peter Sweatman, director of MTC. “Through this consortium arrangement, we seek to engage the range of cutting-edge technology suppliers, thought leaders, and entrepreneurs required to inform and drive progress toward that transformative vision.” [Click image below to enlarge]

The affiliates represent a broad range of sectors that will play a role in shaping a viable system of connected and automated vehicles, including automotive manufacturing, vehicle communication devices, chips and hardware, and insurance, as well as companies engaged in such technologies as advanced modeling, big data acquisition, and intelligent transportation systems, the statement said.

Related: Uber, Carnegie Mellon University to partner on driverless car research

The affiliates program has 27 initial members, who each contribute a total of $150,000 over three years.

According to the National Highway Transportation Safety Administration, more than 33,000 fatalities occurred in the United States as a result of vehicle crashes in 2012, with human error as a primary cause.

“As the debate about the social and economic benefits of autonomous vehicles continues, the insurance industry is contemplating the impact, particularly as it applies to liability exposures,” Munich Re said on its website. “Who will be liable when an autonomous vehicle is involved in an accident? Will liability shift from driver to manufacturer as vehicle control shifts from human operator to autonomous systems? How will we manage cyber liability exposures that may arise from vehicle to vehicle communications systems integral to autonomous vehicle technology?”

Related: Self-driving cars ‘a dangerous idea,’ say 65% of American drivers surveyed

Besides liability, Munich Re also questioned how autonomous vehicles would impact the tools underwriters use to evaluate risks and what new products would be needed, both for traditional auto manufacturers and suppliers faced with new risks and for new entrants into the autonomous vehicle supply chain.