A Cursory Glimpse at ADAS and Its Impact on Motor Vehicle Insurance

The automotive technology known as Advanced Driver Assistance Systems (ADAS) has been changing the way car makers are focusing on safety in building cars. In conjunction with the emerging trend, motor vehicle insurance policies are likewise being developed by adopting an ADAS model for its risk scoring system.

One of the frontrunners in the development of ADAS-based risk scoring system is Swiss Re, which last September, 2020 entered into partnership with Toyota Insurance Services. The partnership will see the adoption of the fintech’s risk-scoring innovation for the insurance policies covering Toyota and Lexus, the vehicles being outfitted with ADAS features and therefore compatible with the Swiss Re ADAS insurance risk scoring system.

Toyota insurance division’s partnership with Swiss Re promises improved insurance policies as the assessment of risks is linked to the safety performance of Toyota and Lexus cars, as well as the extent with which drivers use the car’s anti-accident car features. Initial rollout of the Toyota Insurance Services’ motor vehicle insurance innovation will be in 2021 across European countries.

Actually, BMW was the first to develop the ADAS-based insurance policies for BMW vehicles when the car company partnered with Swiss Re in 2019.

What Exactly is Swiss Re’s ADAS Risk Scoring Innovation?

Swiss Re’s risk scoring technology for motor vehicle insurance is vehicle-specific as the risk assessment factors will be based on a car-manufacturer’s safety specifications. Using data collected from actual car crash tests conducted by Swiss Re, a risk scoring system was developed based on simulations of various car accident scenarios involving a specific car.

The scoring system will then produce safety score for the subject vehicle using all available ADAS configurations. The higher the score results, the safer the car the lower the potential risks. However, the insurance policy and its pricing is still dependent on real-time information on where and how a car model on which the risk scoring system was developed, is being used. Swiss Re simply calls the car-specific insurance that they develop using their risk-scoring system is simply Usage Based Insurance (UBI) solution.

Andrea Keller, the Senior Strategy & Partnership Manager at Swiss Re said that their goal is tro drive innovation that will support a win-win solution for both the car manufacturers and the motor insurance sector. Through Swiss Re’s risk scoring system, consumers will be encouraged to purchase ADAS vehicles, while paying for insurance at reduced costs albeit dependent on the manner and extent the driver uses the vehicle and its anti-accident safety features.
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In the meantime, while car insurance providers abound and in tight competition with other offers, carinsurancesnearme.com gives car owners advice of not skipping the process of comparing all available options. Mainly because most car insurance policies in the market still follow the traditional approach in risk assessments.