The insurance industry is finally beginning to gain statistical proof that Advanced Driver Assistance Systems (ADAS) reduce the number of crashes. It has been demonstrated in the US that approximately one quarter of common low-speed collisions are prevented by active safety systems offered by Volvo in its XC60 model.
The US Insurance Institute for Highway Safety (IIHS) has released statistics that show drivers of Volvo XC60 SUVs fitted with the City Safety ADAS package made 27% fewer claims for collision damage than other SUVs. “This proof from the IIHS is expected to support the wider take-up of active safety systems as insurers will begin to offer reductions in the price of cover for ADAS-equipped vehicles,” says Stephen Longden, author of SBD’s recent report Kickstarting the mass market for ADAS ~ a review of the key market drivers. “Up to this point, the insurance industry has generally been tentative in its reaction to ADAS as it has been nervous of increased repair costs and unconvinced about their effectiveness,” he adds.
“Many insurers have been waiting for real world statistics before they can internally justify reductions in the cost of their insurance cover,” says Longden. “The insurance industry is culturally very cautious and proof is needed of the benefits of ADAS fitment. This proof is now emerging from research such as the IIHS study and this should lead to discounts for consumers. Consumer take-up of active safety systems is set for strong growth when insurance discounts are combined with the inclusion of ADAS systems in new car safety star-rating assessments and the emergence of low-cost system packages such as that seen in the Ford Focus” .
Volvo’s City Safety is focused on low-speed (under 19 mph) font-to-rear collision avoidance through autonomous emergency braking. The IIHS study, performed by its Highway Loss Data Institute (HLDI), compared the number of insurance claims and their severity for XC60s with other mid-size luxury SUVs and also other Volvo models not fitted with ADAS. The HLDI attempted to take geographic and demographic factors into account when comparing the insurance claims.
The study indicates that drivers of Volvo XC60s fitted with ADAS made 51% fewer bodily injury claims compared to other SUVs. However, the average cost of property damage claims for XC60s was higher than for the other control groups (10% higher than other SUVs) with an average claim of $3,000. The HLDI says this is due to the reduction in the number of low-cost claims for minor low-speed collisions prevented by the ADAS. The IIHS is funded by automotive insurance companies to act as a neutral research organisation.
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