It’s not about insurance, it’s about the definition of level 3 automation. It requires the vehicle to have very high confidence that it can drive without mistakes, because a human is not monitoring the driving.
Level 2 systems can often work in more conditions because they have a lower requirement for reliability. They are permitted to make mistakes without realizing it, because the human driver is required to monitor and override the system.
Level 2 systems can often work in more conditions because they have a lower requirement for reliability. They are permitted to make mistakes without realizing it, because the human driver is required to monitor and override the system.