ADAS to impact auto insurance, Evercore ISI report

Automotive innovation is moving at record speed. NAMIC’s new paper explores how autonomous vehicles will impact insurers, policymakers & the public. Read here: https://bit.ly/48IFv4Q #NAMICConnects

Robotaxis are set to shake up Australia’s motor insurance market I was recently featured in Insurance Business Australia discussing what autonomous vehicles mean for insurers, brokers, and clients. With liability shifting from drivers to technology providers, and new risks like cyber exposures emerging, the insurance industry needs to rethink how policies are structured and delivered. It’s an exciting time of change, and a chance for insurers and brokers to get ahead of the curve. Read the full article here: insurancebusinessmag.com https://lnkd.in/gSbn96Mw #InsuranceIndustry #MotorInsurance #InsuranceInnovation #RiskManagement #Technology #AutonomousVehicles #FutureOfMobility #Robotaxis

Blame-Free Robotaxi Crashes Are Still Crashes: The tricky logic behind robotaxi crash metrics. In this Substack post I discuss which robotaxi crashes should "count" for robotaxi safety metrics. Some say that all crashes should count. Some say that only at-fault crashes should count. And some discussions about robotaxi safety say things like “no fatal crashes” when they should be saying “no at-fault fatal crashes” — which are two quite different things. The arguments for and against using blame as a filter for which crashes count is tricky. So let’s try to sort that out. For example, when some robotaxi company claims that their vehicles harm fewer people than human-driven cars, should that be based on all crashes or just at-fault crashes? We argue that blame-free is the best default metric. Blame-based metrics could have their place, but currently suffer from significant validity issues that need to be worked out before anyone should believe that at-fault crashes is predictive of net safety outcomes. Or perhaps the right answer is to report both metrics if what we care about is transparency and improving safety rather than claiming victory. https://lnkd.in/eK9D2SdN

Insurance risk models need an upgrade for modern vehicle tech. ADAS feature sets vary widely, yet insurers often lack the granular data needed to assess risk. Standardized ADAS data can provide the missing link. #ADAS #AutoInsurance #ReversingRatioTrends #DriverAssistance https://bit.ly/3IrOWLx

"Traditional motor insurance assesses the driver, the vehicle and how it is used. For autonomous vehicles, insurers must also consider the software, hardware and regulatory environment," Jonathan Dye, Head of Motor at QBE Europe, tells Fleet News. "Yet," said Jonathan, "there is currently little exposure, accident or loss data to guide underwriting, making liability assessments and risk pricing far more difficult. This also introduces new vulnerabilities, such as software updates, cyber-security and potential system failures." https://lnkd.in/dcfZUXk6

INSHUR has added Guy Farley, co-founder and former CTO of ManyPets, to its UK board of advisors as it ramps up efforts in AI-driven and autonomous vehicle insurance https://lnkd.in/d5FCr9CT

INSHUR has added Guy Farley, co-founder and former CTO of ManyPets, to its UK board of advisors as it ramps up efforts in AI-driven and autonomous vehicle insurance https://lnkd.in/dMtrP-q2

🚗 ADAS is Quietly Reshaping the Auto Insurance and Collision Repair Landscape Advanced Driver-Assistance Systems (ADAS) aren’t just changing how vehicles are repaired — they’re reshaping the economics of auto insurance. A recent Evercore ISI report projects that growing ADAS adoption will cut annual loss cost trends by about 1% per year, accelerating to 2–3% by 2030 as penetration hits the 50% mark across the U.S. fleet. That’s a massive shift in underwriting assumptions, claim frequency, and even insurer profitability. For collision repairers ADAS-equipped vehicles will continue to reduce accident frequency, especially low-speed collisions (rear-ends, parking impacts). But when a crash does occur, the repair will be more technically demanding — involving sensor replacements, re-calibration, software validation, and post-scan documentation. 👉 Fewer repairs overall, but each one will require higher skill, precision, and documentation. Key takeaways: ADAS penetration: 25% in 2024 → 50% expected by 2030 Claim frequency drops: Bodily Injury -24%, Property Damage -19%, Collision -11% Top impact features: Front AEB, Forward Collision Warning, Blind Spot Monitoring, Rear AEB Severity trends: Mixed — lower-speed impacts are declining, but high-severity events may remain While ADAS may initially boost insurer margins, it could ultimately flatten premium growth as fewer claims enter the system. For repairers, this signals a shifting landscape: fewer accidents but more complex, higher-cost repairs when they do occur. 👉 The bottom line: ADAS is changing risk, repair, and revenue models — not in theory, but in real data. The question is: Are collision and calibration businesses aligning their strategy to this new insurance reality? #ADAS #AutoInsurance #CollisionRepair #Calibrations #AutomotiveTechnology #FutureOfRepair #EVs #AVs #AI

Deployment of driverless busses in downtown Singapore has taken a step forward. The buses will run alongside manned buses as part of a hybrid fleet. Further, a safety operator will be stationed in each of the driverless buses, at least during the initial period. Currently no news on what insurance cover has been used. It has previously been reported that Allianz insures Singapore’s first fully driverless bus route on Sentosa. This bus uses a remote driver (i.e. someone sat in front of a computer screen in an office) to monitor the bus. Press reports implied that Allianz treated the bus in the same way as a traditional motor vehicle. The same press report noted that the Moovita bus at Ngee Ann Poly was insured by a motor policy issued by Liberty as well as a product liability insurance from Aon #insurancelaw #driverless #AV #insurance #publictransport https://lnkd.in/gPr_CyYG

KPIs - Total Car Makes: 78 - Total Car Models: 1,009 - Coverage Zone (Highest Claim Amount): Urban – ₦382,266,218.19 - Coverage Zone (Highest Claim Frequency): Suburban – 3,883 claims - Car Make (Most Involved): Ford - Car Model (Most Involved): Grand Prix - Car Color (Highest Claims): Turquoise – 105.6million - Car Usage (Highest Share): Private – 30.06K claims (56.46%) Deductions: The analysis on car insurance policies shows that claim activity is spread fairly evenly across all coverage zones (Urban, Rural, Suburban, etc.), with only slight variations in average claim amounts (approximately 49K–50K). This indicates a balanced distribution of claims irrespective of geography. However, households in highly urban and urban zones tend to generate the highest claim amounts, likely due to higher traffic density and greater exposure to risk. Education level has a strong correlation with claims, as individuals with Bachelor’s degrees account for nearly half of all claims both in amount and frequency. This could be linked to the demographic group most likely to own cars in high-risk zones. In terms of car involvement, Ford, Chevrolet, and Toyota are the most frequent makes in insurance claims, while models like Grand Prix, Mustang, Camaro, and Ranger consistently appear with high claim involvement. Makes such as Hillman and Holden show higher average claim amounts, suggesting higher severity per incident. Car colours also play a role: turquoise, green, and crimson cars lead in both claim amount and frequency, which may reflect usage preferences or exposure levels. Claim usage is dominated by private cars (approximately 56%), compared to commercial vehicles. Gender and family status also show influence, with a noticeable share of claims linked to drivers with kids. Overall, the insights suggest insurers need to watch high-risk car makes/models, color preferences, and demographic patterns when pricing premiums. NOTE: Urban claims are the costliest, Suburban claims the most frequent, and Bachelor-degree holders with private Aquamarine cars present the highest risk profile. Quantum Analytics NGJonathan Osagie