The Saudi Central Bank (SAMA) announced approving a new and first-of-its-kind insurance product designed to provide a coverage of autonomous vehicles and related risks. This step demonstrates SAMA's commitment to meet the ever-evolving needs of the Saudi market with innovative new products to support the insurance sector and achieve the objectives of the Financial Sector Development Program (FSDP).
SAMA has indicated that the product provides insurance coverage of autonomous vehicles (AVs) that can drive themselves from a starting point to a predetermined destination in 'autopilot' mode using various in-vehicle technologies and sensors, including adaptive cruise control, active steering, anti-lock braking systems, GPS navigation technology, lasers and radar. The coverage is only valid for vehicles driven and operated in licensed areas and dedicated zones for self-driving vehicles. This approval is part of SAMA's ongoing commitment to keeping up with the latest industry developments and to cater for innovative insurance products and solutions to the insurance companies and providers as well as helping to optimize risk management, in line with the efforts to achieve the objectives of the Saudi Vision 2030.