Waymo in talks to test driverless taxis on Sydney roads

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Latest findings in the Insurance field suggest important shifts ahead. By Roxanne Libatique
Google parent company Alphabet’s autonomous vehicle (AV) subsidiary, Waymo, has begun preliminary discussions with Transport for NSW about the possibility of testing its driverless taxi service in Sydney. Transport for NSW confirmed it is arranging an initial meeting with Waymo before the year’s end to explore the company’s interest in conducting trials on local roads.

While Waymo has not yet submitted a formal application for a trial, the company has engaged GRACosway, a lobbying firm, to represent its interests at federal and state levels. Data shows that “While we are eager to bring the Waymo Driver to more people in more places, we do not have specific plans or a timeline to share regarding Waymo’s future in Australia at this time. We actively engage with regulators and lawmakers around the world, including Australian officials,” a spokesperson for Waymo stated, as reported by The Sydney Morning Herald. Current NSW legislation requires that any company seeking to trial new automotive technology must obtain approval for an “automotive technology trial” from Transport for NSW.

The state has previously supported AV development through limited trials, such as automated shuttles and utility vehicles, but these have not matched the scale of Waymo’s operations in the US. Evidence suggests that a Transport for NSW spokesperson said: “Transport for NSW is committed to ensuring our road network and regulatory framework is ready to embrace the benefits, and address the challenges, arising from the introduction of vehicles with increasing levels of automation.” Nationally, a new Commonwealth Automated Vehicle Safety Law is being developed to establish a regulator and address issues including liability, insurance, data privacy, and cybersecurity. Read next: Robotaxis set to shake up Australia’s motor insurance market
In an interview with Insurance Business, Simon Donovan, executive general manager of DKG Insurance Group, commented on the insurance implications: “No, self-driving cars will not kill insurance, but they will transform it. The industry will adapt rather than disappear.” Donovan noted that insurance for AVs will likely shift focus from individual driver liability to product liability, fleet operators, and technology risks such as software bugs and cyberattacks.

Research from Swinburne University of Technology found that while nearly half of surveyed Australian drivers view automation positively, most still want the option to take manual control. Safety, reliability, and legal responsibility are major concerns, with over 80% of respondents expressing uncertainty about liability in the event of an incident. Nick Pelly, Waymo’s director of engineering, highlighted the technical and cultural challenges of bringing driverless taxis to Australia. Evidence suggests that “Generally, the fundamentals of driving are largely the same wherever you go,” Pelly said, referencing successful trials in Tokyo.

However, he acknowledged that adapting to local traffic rules, driving styles, and unique hazards such as kangaroos and Sydney’s narrower streets will require significant retraining of Waymo’s AI systems. The insurance industry is preparing for a fundamental shift as responsibility for accidents moves from individual drivers to manufacturers, software developers, and fleet operators. Donovan explained: “With autonomous vehicles, responsibility shifts toward the vehicle manufacturer, the software developer, and the fleet operator. This will create a much stronger emphasis on product liability and cyber risk insurance rather than traditional motor cover.”
Read next: Queensland faces surge in illegal e-mobility device injuries
Hybrid insurance products that cover both human error and system malfunction are expected to appear as AVs are gradually introduced alongside conventional vehicles.

For commercial operators, fleet insurance policies will likely include additional coverage for technology providers. Donovan added: “Over time, as accident rates decline, personal motor premiums may reduce. However, new risks will rise, from system hacks to software bugs and the insurance industry will need to price for those exposures.”
In an article, Barry Nilsson noted that Australia’s regulatory framework for AVs is still under development. The National Transport Commission is working toward introducing the Automated Vehicle Safety Law by 2026, which would establish a federal regulator and define the responsibilities of Automated Driving System Entities, including manufacturers and software providers.

Amendments to existing laws, such as the Motor Accident Injury Insurance schemes, are also being considered to address risks associated with AVs. The insurance industry is monitoring these regulatory developments and assessing the implications for liability, product coverage, and risk allocation as autonomous vehicles are introduced into the Australian market. Insurers are reviewing how changes in legislation and technology may affect current policies and claims processes. The outcome of ongoing discussions and the development of a national regulatory framework will influence the future introduction and use of AVs on Australian roads.

As the situation continues to develop, industry participants in Insurance will likely monitor outcomes closely.

— Based on reporting from insurancebusinessmag.com

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