While insurers have begun developing coverage for unmanned aircraft, the International Underwriting Association (IUA) says further involvement in autonomous aviation hinges on a robust regulatory framework that prioritises safety and legal clarity.
In a response to the Law Commission’s consultation on autonomous flight, the IUA stated that insurers are already preparing insurance solutions for technologies such as air taxis and drone delivery systems. However, it said further engagement will depend on the existence of enforceable regulations that provide operational certainty and liability definition.
The Law Commission launched the consultation following a request from the Civil Aviation Authority and the Department for Transport to review current laws relating to autonomous flight.
Tom Hughes, director of underwriting at the IUA, said insurers have a track record of supporting new technologies and are responding to the increasing use of unmanned aerial vehicles. He said that “safety must be the paramount focus,” adding that early-stage incidents could affect public trust and discourage market participation.
“A clear and enforceable regulatory regime will help mitigate risks and support the development of insurance products, whether through adaptation of existing policy wordings or the creation of new ones,” Hughes added.
The IUA said the current legal framework, largely based on pilot error, may not be suited to the operational realities of autonomous aviation. It proposed a clear delineation of liability across operators, manufacturers and software developers, stating that ambiguity in this area could result in litigation and increased insurance costs.
It also addressed the use of artificial intelligence in the aviation sector, pointing to the increasing role of automation in flight control, air traffic management, weather forecasting, and maintenance systems. The organisation drew comparisons with developments in the automotive industry, where liability is now assessed based on the level of automation.
According to Hughes, software developers may be accountable for events previously assigned to human pilots.
“Product liability law must evolve to reflect the growing role of artificial intelligence in aircraft operation, air traffic management, route planning, weather forecasting, and maintenance,” he said.
How should insurers prepare for the legal and operational risks associated with autonomous aviation? Share your views in the comments.
