BRUSSELS--(BUSINESS WIRE)--PTOLEMUS Consulting Group’s Autonomous Vehicle Global Study highlights that most insurers still need to understand how various levels of automation have already begun and will continue to impact them.
In the US, ADAS packages, including frontal and lateral collision avoidance systems, already have the potential to reduce claims costs by up to 42%. This could increase to more than 50% when Pedestrian Protection and Cross Traffic Systems are added to the set.
By 2025, highly automated vehicles will reduce claims costs by as much as 80%. However significant benefits can be generated immediately with today’s autonomous safety features.
Despite their potential to reduce accidents, ADAS features have been mostly ignored by insurers and have had little effect on premiums.
Only 2 major insurance groups, Allianz and Liberty Mutual have taken steps towards pricing safer vehicles better. Most insurers continue to lose out because
- Crash testing and vehicle ratings are not reacting to the market fast enough,
- Information regarding driverless functions are not passed on or understood by insurers,
- The added cost of repairing vehicles equipped with these new systems is unclear.
As a result, many car manufacturers are unhappy with the insurance rates given to new models. Tesla has already reacted to this by launching insurance coverage directly.
By 2025, 100 million cars in Europe and the US will be “hands-off”, but the driver will remain liable. In its new Autonomous Vehicle report, PTOLEMUS recommends insurers to create a dynamic car score as well as a driver score and forecasts that average market premiums will fall by 12-15% in the US and Europe by 2030.
With new regulations and distractions forcing average premiums to rise today, staying competitive while keeping a low loss ratio is increasingly difficult. Usage-based Insurance (UBI) has been instrumental in attracting the safest drivers; ADAS can help insurers attract the safest cars.
About PTOLEMUS Consulting Group
PTOLEMUS is a strategy consulting & research firm entirely focused on connected mobility and the Internet of Things. It assists service providers, insurers and OEMs.