Autonomous Driving In Japan – Part 4: Insurance

It was announced in early November 2020 that Honda had become the world's first automaker to receive a national certification for Level 3 ('eyes-off') autonomous driving technology in Japan. The new technology is no longer a dream and Honda plans to start selling the Level 3 vehicles in March 2021.

Insurance companies will need to be prepared to adapt quickly to a new landscape shaped by novel risk calculations and liabilities. If the market for 'driverless' technology expands as predicted, insurers will be faced with the difficult task of establishing their role in a world where there is hope that human error can be eradicated from driving entirely.

As things stand, while insurance policies will need a radical shake-up, there are no scheduled amendments to the relevant Japanese insurance laws – implying that no large-scale overhauls may be needed. We set out below a very brief summary of the existing laws for those who are not familiar with the