Driverless Vehicles in Insurance
•Download as PPTX, PDF•
0 likes•188 views
This document outlines eight elements that will drive the mass adoption of driverless vehicles: the convergence of technology, the rise of new manufacturers, infrastructure needs, regulatory considerations, data management, mobility services, legal responsibility, and consumer adoption. It also discusses who may be early adopters, risks and products, liability and costs, and provides a timeline showing introduction now through 2017, then partial driver substitution from 2020-2025, and fully autonomous vehicles becoming the new normal by 2040 through continuous improvement. The document poses questions about this emerging technology and its transformation of transportation.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (18)
Similar to Driverless Vehicles in Insurance
Similar to Driverless Vehicles in Insurance (20)
Recently uploaded
Recently uploaded (19)
Driverless Vehicles in Insurance
- 1. DRIVERLESS VEHICLES ELEMENTS, LIABILITY, RISK AND OPPORTUNITY 27th June 2016
- 2. THE 8 ELEMENTS OF MASS CHANGE Convergence of Technology Rise of new leading manufacturers Infrastructure Regulatory considerations Data collection & management Mobility Services Legal Responsibility Consumer Adoption 2 Driverless Vehicles - Elements, Liability, Risk and Opportunity
- 3. WHO MIGHT BE THE EARLY ADOPTERS OF DRIVERLESS TECHNOLOGY? 3 Driverless Vehicles - Elements, Liability, Risk and Opportunity
- 4. RISKS & PRODUCTS 4 Driverless Vehicles - Elements, Liability, Risk and Opportunity
- 5. £ LIABILITY & COSTS 5 Driverless Vehicles - Elements, Liability, Risk and Opportunity
- 6. • Introduction to autonomous vehicles • High-tech companies expressing interest • Partial driver substitution technology • More consumers experience technology • Potential mandate for V2V communications • Fully autonomous all-speed vehicles • V2V capabilities likely embedded in new vehicles • Increase in scale drives down costs • Broad-based transformation begins • New vehicles have autonomous capabilities • A “new normal” realized by 2040 TIMELINE & BENEFITS PHASE 3 CONTINUOUS IMPROVEMENT INTRODUCTION PHASE 2 2025 - 2040 2020 - 2025 2017 - 2020 Now - 2017 6 Driverless Vehicles - Elements, Liability, Risk and Opportunity
- 7. QUESTIONS? 7 Driverless Vehicles - Elements, Liability, Risk and Opportunity
Editor's Notes
- Driverless Vehicles (Front Page) Elements, Liability, Risk and Opportunity So the future is here, and driverless cars are finally a reality on the roads of Britain. From cruise control to full-blown autopilot, many of our cars now come with driver-assisting technology as standard, and we can expect to see a gradual shift to fully driverless in the coming years – but how do we get there and what does it mean for insurance? There are 6 levels of vehicle autonomy that fall in to 2 categories; Driver Monitored Level 0: No Automation The driver (human) controls it all Level 1: Driver Assistance The driver (human) with cruise control and anti-lock brakes. Level 2: Partial Automation assisted steering, acceleration and braking. System Monitored Level 3: Conditional Automation Drivers are still necessary, but are able to completely shift "safety-critical functions" to the vehicle. Level 4: High Automation. Periodic human control may be required Level 5: Full Automation Fully automated with no controls for Human intervention. This level provides the potential for the car to operate and reach its destination without a human present inside the vehicle.
- The 8 Elements of Mass Change (Slide 2) As we switch to driverless cars? There are 8 elements that will work together in parallel to establish and grow mass change. Convergence of Technology Continue to strengthen creating mass connectivity Enhanced data capabilities Rise of new leading car manufacturers Watch the creators of autonomous vehicle technology begin to lead the market in vehicle production, we can expect to see Google, Tesla, Apple lead the way. Traditional manufacturers may struggle to compete at the same pace at the tech giants. Infrastructure Whilst driverless cars can use the current infrastructure, we can expect to see this enhanced overtime to become a smart infrastructure with added functionality for the vehicles We will see the creation of communication between road and vehicles Providing richer data Highways will accommodate more cars possibly up to a 500% increase Regulatory Considerations There will need to be radical changes in regulations to accommodate the switch Use cases over time will feed the continuous change With Data Collection & Management We will be able to see who did what, where, when and how fast; See growth of advanced telematics; And See Enhanced fraud detection. Mobility Services low cost and convenience, which are the core benefits of Car sharing will be enhanced Legal Responsibility As the vehicle will be making the decisions, the risk profile will change, we’ll talk more about this. Consumer Adoption Once consumers understand the tangible benefits like Multitasking while driving, Safer travel, Faster commutes, adoption will gain momentum. And Each driver will bring a unique data rich value proposition for insurance products
- Who might be the early adopters of driverless technology? (Slide 3) Whilst we have a few wealthy private consumers adopting driverless cars, due to the current cost of technology, it is likely that the commercial sector will be the early adopters of driverless technology on a large scale? Fast food delivery With the removal of young moped drivers from the roads, these businesses could also be the benefactors of low insurance rates. Taxis It feels that this is the natural progression for Uber – they are already connected to IOT and are cashless business. Large Fleets Looking to minimise risk Public Transportation Buses Enterprise Transportation
- Risks & Products (Slide 4) Risks Increased and new Cyber Risks from an ever richer pool of data - hacking or attempted hacking of a cars operating system or other on-board software Risk transfer from the driver Interplay between different levels of technology on same road space introduces complexity and potential risk Technical malfunction, software/hardware, power supply (low battery), network coverage Satellite failure or outages that affect your car’s navigation systems, which could also lead to much larger class actions. More recently The United Nations has set up a task force to assess electromagnetic radiation levels in Driverless Vehicles, which could lead to passenger risk of Radiation Expose Products Telematics Policies – As connection to the IOT and the long distance communication increases Product Liability Policies becoming a wider more detailed all-encompassing policy, replacing A move away from traditional Personal Lines motor –There will likely be changes in the traditional motor policies to accommodate tech, make, model and style of car may assume a greater importance. Life - Mortality tables will be impacted New multiline policies which accommodate multiple products for the driverless journey Product Placement Vehicle user profiles will create commercial opportunities through which to direct new products The industry may choose to create incentives for purchasing insurance products for autonomous vehicles, as opposed to traditional
- Liability & Costs (Slide 5) Accident liability currently rests with the drivers but with a move to driverless we will see manufacturers, system developers, car dealers, car maintenance firms or a combination be brought into deeper discussions on liability? We can expect to see much liability discussion around how to cope with vehicles at different levels of automation, as we would expect liability and costs will differ between levels. Data from vehicles will be recorded and used to improve safety and clarify liability There may be potential premium penalisation for drivers who chose not to go driverless as they may be increasingly measured against the technology. Motor Insurance claim frequency could fall by up to 80%, ultimately leading to lower premiums and claims costs
- Timeline & Benefits (Slide 6) From now to 2040 can be broken in to 4 phases within which the 6 levels of automation can be seen progressing Self-driving cars likely to lead to lower accident rate (2000 UK fatalities per year) Wider demographic enabled to use cars (e.g. elderly, disabled, blind) Fuel efficiency and emissions reduction Urban impact – reduce congestion, rethink the demand for parking spaces Safer roads for cyclists and other road users Wider more sophisticated communication networks More time for us to do other things Lastly, we can expect driverless cars to dramatically reduce heated discussion around the validity of one’s navigational skills. We have good cause to be optimistic. None of the challenges that I have spoken about today are by any means insurmountable. The insurers who are able to make use of the increasing volumes of data - building policies to recognise the shifts of risk - are likely to move ahead of their competitors and should find opportunities to make a profit in a competitive market.