Tag Archives: V2V

IoT: Collaboration Is Now Mandatory

The definition of collaboration is the action of working with someone to produce or create something. That seems far too simplistic a way to describe the many types of collaboration already at work in the insurance industry and moreover does not begin to convey the looming and enormous demand for working together that will be required for success in implementing the Insurance Internet of Things (IoT).

Historically, the insurance industry has had to use a wide variety of collaboration tools to succeed as data, information, consumer behavior, products and regulations changed with increasing velocity. These tools included e-mail, texting, instant messaging, content management systems, enterprise social platforms and formal enterprise collaboration software. Insurers have even begun to leverage the use of digital technology and web-based collaboration tools such as Slack to empower employees, enhance user experiences, improve internal communication and strengthen agent and broker relationships.

See also: Insurance and the Internet of Things  

Looking beyond insurance companies themselves, we note the emergence of insurtech accelerators and incubators, both independent and captive. What is becoming apparent is that there is a convergence taking place between these entrepreneurial startups and the traditional carriers, sparking collaboration between the new, small and fast market entrants with the old, big and slow incumbents. Much more of this kind of collaboration will be required for the insurance industry to survive and thrive in tomorrow’s world.

New forms of collaboration are emerging in the insurance ecosystem, some more formal than others. Strategic alliances and partnerships are being announced daily, as are vendor-vendor and carrier-carrier arrangements. Recent examples are plentiful; CoreLogic joined the Guidewire PartnerConnect program to deliver more accurate property risk pricing and residential estimating more efficiently to Guidewire’s property insurance customer base, and Insurity collaborated with Allstate Business Insurance to quickly deliver a new self-service quoting app with convenient data pre-fill.

Co-opetition is a more innovative form of collaboration that has been gaining traction. Former competitors work together to leverage a common, defined opportunity that yields better results for each company than either could have achieved on its own. In the world of insurance IoT, of which the connected car is a major subset, we increasingly see original equipment manufacturers (OEMs) participating in programs with auto insurers with telematics data exchanges and with each other in developing vehicle-to-vehicle (V2V) communication standards.

In other areas of insurance IoT, we are seeing a rapidly increasing number of health and property insurtech partnership announcements with insurers delivering innovative new risk-management products and services to consumers (e.g. Vitality-John Hancock, Roost-Liberty Mutual, True Motion-Progressive, etc.).

As the number of connected things expands exponentially, so, too, will the frequency and velocity of data generated by these sensors and devices. The ability to receive, normalize, manage and use all of this digital data will quickly exceed the capacity and expertise of even the largest insurers, so collaboration with a new generation of information management and data science providers will be mandatory.

See also: 12 Issues Inhibiting the Internet of Things  

For insurers and others to successfully navigate this burgeoning ecosystem, access to relevant knowledge and competitive information will also be mandatory, and one effective way to gain these insights is participation in subject-specific industry conferences where expert speakers and industry thought leaders share their experiences and insights. One such event is the Insurance IoT USA Summit taking place in Chicago on Nov. 30 and Dec. 1.

So critical will be effective collaboration in the future that it is conceivable that formal courses, certifications and degrees in collaboration will be offered by business schools in response to the exploding demand for this set of business skills and expertise driven by IoT proliferation and adoption. In any event, participants in the insurance ecosystem that best master the art of collaboration are sure to be the market leaders of the IoT future.

Connected Vehicles Can Improve Claims

Personal auto insurers have traditionally been more reactive than proactive in a slowly changing industry. However, that approach may no longer be adequate as vehicle technology accelerates at a pace the insurance industry is unaccustomed to embracing.

To date, the focus of personal auto insurers has been on the underwriting impact of driver-assisted technologies that can self-park, maintain their lane and even force the vehicle to stop to avoid collisions. Insurers are continually fine-tuning their underwriting algorithms to align with such decreasing risks. However, insurers need to broaden their scope and move beyond tweaking rates. Let’s face the truth: Automobile claim processing relies on antiquated theories and techniques that are costly and inefficient and can produce faulty outcomes.

See also: Telematics: Because Accidents Happen  

Up until the 1980s, adjusters actually went out to the accident location to canvass the scene, interview witnesses, measure skid marks and look for obstructions to vision — all for the purpose of making a sound and well-researched liability decision. To cut costs, insurers eliminated scene investigations and relied almost solely on driver statements and physical damage to determine liability. The process works fine in a clear liability situation like when a stopped vehicle is rear-ended. But it doesn’t work so well in a multiple-car pile-up or an accident at an intersection. How often do we hear from the driver statements like, “He came out of nowhere,” or, “I thought I had the green light,” or, simply, “I don’t remember”? These same individuals have a vested interest in being found free of fault, in fear of adding points to their driving record and seeing increased rates. How do we expect desk-bound adjusters to make the right decision with facts and circumstances such as these? Liability adjusters futilely spend an inordinate amount of time searching for clues, hoping to uncover the truth when faced with conflicting stories or facts.

Today, there are cameras everywhere and telematics available on almost every vehicle. The University of Michigan’s MCity is testing vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications that will soon be prevalent in our environment. Just as autonomous vehicles are using these cameras and sensors to alter the vehicle’s behavior, the V2V/V2I images and data can record the facts associated with the accident. This data can be consolidated to confirm and recreate the scene leading up to an accident.

Information that adjusters rely upon will suddenly become objective, rather than subjective or tainted by guesstimates. For example, in an accident where a pedestrian darts out from between parked cars and is hit by a moving vehicle, the data will answer many questions. (How fast were you traveling? At what point did you apply the brakes? Did you try to swerve to avoid him? Were any vehicles or vegetation blocking your vision?) Without a witness, this type of accident is difficult to assess today, and the task is even harder to assess when the pedestrian is a child. Utilizing V2V and V2I data to validate the accident facts can make the process much less painful and much more equitable for all involved, especially for anguished parents who may not have seen their child dart into the street.

See also: Predictive Analytics, Text Mining, And Drug-Impaired Driving In Automobile Accidents  

While not everyone wants to share their day-to-day driving data with their insurers, insurers could offer customer discounts or deductible waivers for sharing the last several minutes of data leading up to the impact. This may be more palatable to many conscientious consumers, who see this option as effectively protecting them from the potential of being falsely accused of liability.

Data is ubiquitous, waiting to be harvested and used to improve liability decision making. It’s time for insurers to initiate interactions with auto manufacturers and transportation infrastructure suppliers to create industry standards for sharing V2V, V2I and telematics data that can result in dramatic, positive changes in how claims are handled and negligence is determined. Insurers all want to make accurate liability decisions and consumers deserve a fair outcome. We finally have the tools available to ensure just that.

Lack of Enthusiasm for Driverless Cars?

Automakers will have to focus on women if they hope to make driverless cars mainstream, according to a NerdWallet survey that shows men are far more likely to express interest in the new technology. The survey of more than 1,000 Americans nationwide also exposes a sharp divide in views on self-driving vehicles between Millennials and older Americans.

Only 37% of women surveyed by NerdWallet expressed any interest in owning a self-driving car, whereas half of men expressed interest.

The survey also found that 53% of respondents ages 18 to 29 were “very interested” or “somewhat interested” in owning a self-driving car, compared with just 41% of those 30 and older.

Consumers Are Skeptical About Driverless Cars

Among key findings of the survey:

  • Most women expressed concern about the safety of self-driving cars, with 55% citing safety as among the biggest drawbacks of the new technology. Only 37% of men were worried about safety.
  • 44% of men were concerned that driverless cars will take the fun out of driving; only 23% of women felt that way.
  • Consumers have a limited amount of trust in autonomous car technology. When asked whether they would put a child alone in a driverless car to go to school or a friend’s house, only 6% of those surveyed would close the door and wave goodbye.
  • While consumers are not yet ready to embrace a driverless world, they are interested in safety technologies that are paving the way for fully autonomous vehicles. Blind-spot detection was by far the most popular new technology, with 42% citing it as the most appealing feature of semi-autonomous cars, followed by emergency braking to prevent crashes, favored by 30%.

Self-driving cars are here

Self-driving cars, also known as autonomous vehicles, once seemed the stuff of science fiction, but they are already testing on the highway and seem certain to end up in dealer showrooms before long. Yet our survey of more than 1,000 Americans found a distinct lack of enthusiasm toward the prospect of driverless cars, with only a small minority “very interested” in buying one and nearly twice as many saying they were “not at all interested.”

Nevertheless, a transition to autonomous cars seems inevitable.

Google recently announced that it will begin putting its self-driving cars on public roads in Mountain View, CA, this summer. Over six years of testing, Google says its cars have been involved in only 11 accidents – none of which was the fault of the Google car. In most cases, the cars were rear-ended.

A self-driving Audi recently completed a trip from San Francisco to New York in nine days, driving in automated mode 99% of the time, according to Delphi Automotive, which made the technology.

Tesla CEO Elon Musk recently announced a software upgrade for some of the maker’s electric cars that will make it possible for the cars to drive from San Francisco to Seattle without human input – “from parking lot to parking lot,” as he put it at a news conference. However, the full autopilot feature will not be enabled, at least initially, he said.

While our survey found Americans as a whole relatively unenthusiastic about driverless cars, men were far more likely than women to express interest.

Interest in Owning a Driverless Car

Self-driving cars use GPS and a variety of sensors (cameras, radar and lasers) to scan and identify the environment around the car. A computer in the car processes data from the sensors to decide on driving actions such as steering, braking and turning. Cars would be networked, using vehicle-to-vehicle (V2V) communication to talk to one another. Ultimately, a human driver becomes just another passenger and would be able to sit back and do other things while en route.

The potential for reducing car accidents could be significant. After all, the computer never takes its “eyes” off the road, never gets distracted, never gets tired.

On May 13, Transportation Secretary Anthony Fox announced that the U.S. Department of Transportation will fast-track rules to require V2V communication in future cars.

Still, many people are firm in their resistance to driverless vehicles: 28% vow they will never purchase a driverless car. Only a very small contingent (3%) is ready to buy a self-driving car right now. The majority of those surveyed (51%) would wait three years or longer after such cars became available before considering buying one.

When People Would Buy a Driverless Car

NerdWallet also wanted to find out what would be appealing about driverless cars that could potentially win over customers. While more than one-third of consumers (36%) did not find anything appealing about driverless cars, about the same percentage liked the ideas of saving on car insurance and letting the car handle routine driving tasks.

What People Like About Driverless Cars

Notably, fewer than one-third of people found the potential for improved safety to be a compelling reason to own a driverless car.

The older the age group, the more likely respondents were to say they couldn’t find anything appealing about driverless cars, from a low of 26% among those ages 18 to 29, to 44% among those age 60 and older.

Safety and cost are top worries

Safety concerns are a major drawback of self-driving cars, according to 46% of respondents, but cost was the biggest worry.

What People Don't Like About Driverless Cars

Concern about safety also bubbled up when we asked about car insurance rates. Typically, cars that crash less are rewarded with lower auto insurance rates. But only 41% of people think owners of self-driving cars should pay less for insurance.

As another measure of trust in autonomous car technology, we asked whether people would put a child in a self-driving car alone to go to school or a friend’s house. Only 6% gave a thumbs-up to that idea. Most people (76%) said no, and the rest were unsure.

However, people did show interest in safety technologies such as collision avoidance, suggesting the possibility that they will eventually come around to self-driving cars if they can be sold on the cars’ safety promises (and if men can still have a little fun). Only 9% of people said they had no interest in any of the technologies we asked about.

Most Desired Advanced Technology Features

A few are ready to spend today

There’s a very small, enthusiastic contingent of people who are ready to embrace driverless cars today: 3% of respondents say they would purchase a driverless car today if they could, and 6% say they’d be willing to pay more than $10,000 extra for a fully autonomous car over a regular car.

Another 15% say they would pay $5,001 to $10,000 more. (Experts generally predict that self-driving cars will cost about $7,000 to $10,000 more than regular cars when they are introduced, with the price differential decreasing in subsequent years.) But pessimism about the value of autonomous cars still prevails: 50% of people say they wouldn’t pay a dime more.

Methodology

NerdWallet conducted a national, online survey of 1,028 randomly selected Americans ages 18 and older on May 12-13, 2015, via SurveyMonkey. Respondents were 52% female and 48% male. By age, 22% were under 30, and 26% were over 60. Margin of error: four percentage points.

For the full study, click here.