"Car Insurance Must Now Evolve into 'Mobility Insurance'"

Insurance Systems Must Also Change to Match New Modes of Transportation

As new modes of transportation such as autonomous vehicles, Urban Air Mobility (UAM), and Personal Mobility (PM) emerge, there is advice that automobile insurance must also evolve to play a new role.

Hwang Hyun-ah, a research fellow at the Korea Insurance Research Institute, emphasized this point at the policy seminar titled "The Role and Challenges of Insurance in the Mobility Era," held on the 6th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, hosted by the Korea Insurance Research Institute.

In her presentation on "Challenges of Automobile Insurance in the Mobility Era," Research Fellow Hwang stated, "It is necessary to derive and respond to phased challenges for new modes of transportation such as autonomous vehicles, electric vehicles, and Personal Mobility (PM)." She explained, "For autonomous vehicles, clarifying liability legislation is key; for PM, establishing a dedicated insurance system is essential; and for electric vehicles, preparing appropriate compensation standards such as battery coverage and replacement vehicle fees is critical."

She added, "Even in the mobility era, automobile insurance must continue to fulfill its fundamental role of compensating accident victims and protecting users," emphasizing, "Platforms are important and should be activated in the mobility sector, but they must be regulated to prevent monopolistic dominance."

Discussions on insurance for drones and UAM were also conducted. Park Se-hoon, a research fellow at the Korea Legislation Research Institute, pointed out in his presentation on "Challenges of Aircraft Insurance in the Mobility Era," "Drones operated by businesses, the government, local governments, and public institutions are already required to subscribe to third-party liability insurance and mutual aid." He noted, "However, non-commercial drones are still not mandated to have insurance, making it difficult to compensate victims if the owner lacks the ability to pay."

He added, "Since UAM falls under aerial mobility, when establishing a UAM insurance system, it is necessary to base it on the mandatory insurance framework of aviation insurance while also considering the characteristics of automobile insurance."

Lee Hyun-kyun, a research fellow at the Korea Institute of Legal Studies, presented on "Challenges of Marine Insurance in the Mobility Era." He stated, "Autonomous ships represent both a crisis and an opportunity that could completely change the existing framework of maritime law and marine insurance." He suggested, "Through autonomous ship insurance, proactive efforts should be made to completely transform the existing maritime law and marine insurance framework, including the development of insurance products and standard terms and conditions."

Photo by Korea Insurance Research Institute

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