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Source: LexisNexis Risk Solutions announcement
ATLANTA — LexisNexis® Risk Solutions has announced a new analysis of the relationship between Advanced Driver Assistance Systems (ADAS) features and U.S. auto insurance claims, which counters common insurance industry sentiment that ADAS repair costs offset ADAS loss cost benefits.
The results are featured in the new white paper, “True Impact of ADAS Features on Insurance Claim Severity Revealed,” which examines the effect of ADAS on claim severity in a multivariate setting.
The findings represent the second half of a two-part study that also examined the relationship between ADAS and claims frequency.
The combined findings show that the change in claim severity in vehicles with ADAS were minimal; however, the decrease in claim frequency was significant. The LexisNexis Risk Solutions study shows an overall reduction in loss cost by coverage, which can warrant ADAS feature-based policy discounts and benefits for both drivers and insurers.
ADAS Analysis from LexisNexis Risk Solutions Sets Record Straight on U.S. Auto Claims Severity, Good for Drivers.
“Insurance companies can use this new ADAS data as part of their rating segmentation to better meet the expectations of insurers’ customers, who often purchase vehicles with advanced safety features with the expectation that it will help lower their insurance rates,” said John Kanet, director, auto insurance, LexisNexis Risk Solutions. “U.S. insurers have been trying to get ADAS feature information at a VIN level for years, but many believe technology has advanced too quickly and the expense of repairing these features neutralizes the loss cost impact of ADAS.
“LexisNexis Risk Solutions has good news for insurers – this ADAS data helps show there is a distinct loss cost benefit, and VIN-level feature information is now available through LexisNexis® Vehicle Build. Insurers focused on total risk analysis can begin to understand the safety features on the vehicle in combination with the risk factors associated with the driver.”
Results from the LexisNexis Risk Solutions multivariate analysis reveal that by having at least one core ADAS feature, there was a reduction in loss cost. Loss cost will vary – more or less – depending on the combination of core ADAS features and how each specific combination of features performs. According to the white paper, having ADAS feature information can result in the following:
• 23-percent reduction in bodily-injury loss cost;
• 14-percent reduction in property-damage loss cost; and
• 8-percent reduction in collision-claim loss cost in ADAS-equipped vehicles compared to non-ADAS vehicles
To view the entire announcement, click HERE.
