The transition towards semi-autonomous vehicle insurance: the contribution of usage-based data

Montserrat Guillen () and Ana Pérez-Marín ()
Additional contact information
Montserrat Guillen: Riskcenter- IREA and Department of Econometrics, University of Barcelona, Av. Diagonal, 690, 08034. Barcelona, Spain
Ana Pérez-Marín: Riskcenter- IREA and Department of Econometrics, University of Barcelona, Av. Diagonal, 690, 08034. Barcelona, Spain

No 201811, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: The use of advanced driver assistance systems and the transition towards semi-autonomous vehicles are expected to contribute to a lower frequency of motor accidents and to have a significant impact for the automobile insurance industry, as rating methods must be revised to ensure that risks are correctly measured. We analyze telematics information and usagebased insurance research to identify the effect of driving patterns on the risk of accident. This is used as a starting point for addressing risk quantification and safety for vehicles than can control speed. Here we estimate the effect of excess speed on the risk of accidents with a real telematics data set. We show scenarios for a reduction of speed limit violations and the consequent decrease in the expected number of accident claims. If excess speed could be eliminated, then the expected number of accident claims could be reduced to half of its initial value, applying the average conditions of our data. As a consequence, insurance premiums also diminish.

Keywords: Usage-based-insurance; ratemaking; semi-autonomous vehicles; advanced driver assistance systems. JEL classification:G22. (search for similar items in EconPapers)
Pages: 21 pages
Date: 2018-05, Revised 2018-05
New Economics Papers: this item is included in nep-ias and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ub.edu/irea/working_papers/2018/201811.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201811

Access Statistics for this paper

More papers in IREA Working Papers from University of Barcelona, Research Institute of Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by Alicia García ().