Driverless cars have the potential to significantly reduce the risks that come from human error on the roads, but insurance giant IAG is worried that unless that they are "connected" to road and traffic infrastructure more risks could emerge.

Cecilia Warren, the director of mobility research and development for IAG, said that while the introduction of driverless cars could reduce the rate of collisions by 90 per cent, it remained unclear what other challenges may eventuate.