Insurers to Define Real-World Risk in ADAS

Paul Myles

TU-Editor

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19th June 2020

Motor insurers in the UK have been offered a system of assessing the real-world accidental damage coverage risk of current ADAS.

At the moment, most carmaker have created their own unique ADAS terminology, definitions and naming structures – sometimes releasing multiple features within the same model year. In addition, many items are chosen as optional extras when a vehicle is purchased from new. This is a challenge for insurers to identify exactly what ADAS features a specific vehicle is equipped with when writing a motor insurance policy.

Now auto insurers are being offered the ability to test a data solution against real-world performance and claims data, prior to the system’s launch later this year. The LexisNexis Vehicle Build claims to be able to evaluate specific ADAS to support pricing and underwriting.

The system uses machine learning to scan millions of lines of automaker vehicle data to logically sequence and classify vehicle safety features and component’s intended operation or purpose. Access to vehicle safety data could help insurance providers factor for their presence throughout the customer journey, in pricing, mid-term adjustments and renewals, and establish the differences in risk profile associated with the vehicles that have these safety features.

Carla Hopkins, senior vertical market manager at LexisNexis Risk Solutions said: “Car manufacturers continually develop and deploy new ADAS features and promote their efficacy in reducing accidents. We therefore want to give the insurance industry the confidence to price or create products with a new level of vehicle build information to reflect the increasing penetration of ADAS in the UK car park. We have invested significantly, gathering and normalising ADAS data, looking at it through an underwriting lens, to give the industry new vehicle-centric insights for pricing and underwriting.”

— Paul Myles is a seasoned automotive journalist based in London. Follow him on Twitter @Paulmyles_