Following months of work going through 12 million insurance claims, analysed with the corresponding vehicle-build sheet data, at LexisNexis Risk Solutions we’ve been gathering evidence on the benefits of the most commonly fitted Advanced Driver Assistance Systems (ADAS) features.
R&D Director and Director of Automotive Development, EMEA,
LexisNexis Risk Solutions
The new data sheds light on the advantages of ADAS, particularly in terms of safety, and how specific vehicle technologies – individually and in combination – correlate with insurance claims and losses.
We conducted this wide analysis as part of the preparations to launch LexisNexis® Vehicle Build, a pioneering product that will soon be available in the US and core markets in Europe.
Across the industry, insurers face a big challenge: Consumers do not know how to put a price tag on safety, and therefore tend not to prioritise it. Without information, to quantify which safety measures are most effective, it is indeed difficult, and not only for drivers. Insurers could also use more and better data in order to advise their clients.
With ADAS, the first difficulty springs from the fact that the features are highly variable across car manufacturers, even when they have the same intended functionality. Consider, for instance, the Lane Departure Warning system. The driver can be alerted by visual warning, audible warning, haptic feedback applied to the steering wheel or applied to the seat. Which one should the driver choose? Is there any evidence of what is the most effective?
This specific research based on 10.1 million earned car years of real-world exposure, and over a million collision and liability claims (sample controlled for multivariate vehicle factors such as model, type, size, and horsepower as well as driver factors) showed that steering wheel vibration came out as being more effective than driver seat vibration.
The results are really exciting, both in terms of creating consumer understanding of the features they’re choosing and paying for, and a new dimension for insurance risk rating by vehicle specification.
Overall, the number of ADAS features per vehicle reduces the property damage loss cost, as distinct from the personal injury loss. The benefits have an impact on both the frequency and severity of claims.
The same happens with personal injury costs, again both in terms of frequency and severity of personal injury claims. In fact, our LexisNexis Risk Solutions data shows that if a vehicle has at least four ADAS features, the driver is over 60% less likely to suffer bodily injury.
We looked further, in order to find out how different features perform. We examined the relativities of ADAS features across property damage, bodily injury and collision frequency. Again, the results are encouraging, with multiple benefits for drivers (figure below).
We should not, however, look at a single feature performance and assume it is solely responsible for lowering the frequency of an occurrence. If we take Adaptive Cruise Control, for example, it is not that it is driving the significant improvement observed in personal injury claims. In reality, there is a positive stacking or clustering effect, with multiple ADAS features interacting together, as vehicles equipped with Adaptive Cruise Control are already safer because they’re more likely to also have other ADAS features.
If you would like to find out how ADAS features are making cars safer, and insurance premiums are going to start reflecting that. We can quantify this for consumers and make it real by working together click HERE.