Measuring Crash Avoidance System Effectiveness with Insurance Data



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www.iihs.org Measuring Crash Avoidance System Effectiveness with Insurance Data 2013 Government/Industry Meeting Washington, DC January 30, 2013 Matthew Moore, Vice President, HLDI

The Insurance Institute for Highway Safety, founded in 1959, is an independent, nonprofit, scientific, and educational organization dedicated to reducing the losses deaths, injuries, and property damage from crashes on the nation's highways. The Highway Loss Data Institute, founded in 1972, shares and supports this mission through scientific studies of insurance data representing the human and economic losses resulting from the ownership and operation of different types of vehicles and by publishing insurance loss results by vehicle make and model. Both organizations are wholly supported by auto insurers. www.iihs.org

Highway Loss Data Institute

HLDI data providers have 80% share of U.S. auto insurance market AAA Northern AAA Northern California, California, Foremost Foremost Nevada Nevada and Utah and Utah GEICO GEICO AIG Agency AIG Agency GMAC GMAC Allstate Allstate The Hartford The Hartford American American Family Family High Point High Point Amica Amica Kentucky Kentucky Farm Bureau Farm Bureau ANPAC ANPAC Liberty Mutual Liberty Mutual Auto Club Auto Group Club Group MetLife MetLife Automobile Automobile Insurers Insurers Bureau Bureau of Mass. of Mass. Nationwide Nationwide Chubb Chubb PEMCO PEMCO COUNTRY COUNTRY Progressive Progressive Erie Erie Rockingham Rockingham Farm Bureau Farm Bureau Financial Financial Services Services (Iowa Farm (Iowa Bureau) Farm Bureau) Safeco Safeco Farmers Farmers Secura Insurance Secura Insurance State Farm Tennessee Farm Bureau Travelers Unitrin USAA

Size of HLDI passenger vehicle database Number of unique VINs in files, January 2013 model year number of vehicles 2003 16,037,878 2004 15,837,777 2005 15,539,974 2006 14,555,883 2007 14,214,501 2008 12,444,140 2009 8,041,491 2010 8,984,595 2011 9,080,974 2012 8,550,880 total 123,288,093

Insurance coverages Collision Physical damage liability Bodily injury liability Medical payments Personal injury protection

Insurance measures Exposure Expressed in insured vehicle years One insured vehicle year represents 1 vehicle insured for 1 year or 2 vehicles insured for 6 months Claim frequency Calculated by dividing claims by exposure Expressed as the number of claims per selected number of insured vehicle years (exposure) Claim severity Represents the average cost per claim Calculated by dividing dollars paid for all claims by the claim count Overall losses Represents the average cost per insured vehicle (year) Calculated by dividing total dollars paid for claims by exposure

Evaluation of crash avoidance technologies

Volvo City Safety

Property damage liability claim frequencies for 2010 Volvo XC60 With City Safety vs. other 2009-10 midsize luxury SUVs 6 5 4 3 2 1 0

Early information about new technology Example of Volvo City Safety loss reduction benefits (HLDI) vs. other midsize luxury SUVs claim frequency claim severity overall losses property damage liability -29.3% -26.6% -23.9% $174 $270 $362 -$21 -$166 -$125 bodily injury -58.9% -51.1% -41.8% collision -23.8% -22.0% -20.1% -$645 -$517 -$392 -$109 -$98 -$86 vs. other Volvos claim frequency claim severity overall losses property damage liability -24.5% -19.2% -13.7% $488 $646 $794 -$5 $2 $7 bodily injury -62.3% -49.2% -31.4% collision -20.2% -16.7% -13.0% -$362 -$147 $58 -$72 -$53 -$36

Forward collision warning and mitigation systems

Forward collision warning with and without autonomous braking Property damage liability claim frequency by manufacturer 20% 10% 0% -10% -20% Acura with Mercedes with Volvo with Mercedes without Volvo without

Forward collision warning with and without autonomous braking Collision claim frequency by manufacturer 10% 5% 0% -5% -10% Acura with Mercedes with Volvo with Mercedes without Volvo without

Forward collision warning with and without autonomous braking Bodily injury claim frequency by manufacturer 40% 20% 0% -20% -40% Acura with Mercedes with Volvo with Mercedes without Volvo without

Forward collision warning with and without autonomous braking Collision claim severity by manufacturer $800 $600 $400 $200 $0 -$200 Acura with Mercedes with Volvo with Mercedes without Volvo without

Forward collision warning with and without autonomous braking Collision overall losses per insured vehicle year by manufacturer $60 $40 $20 $0 -$20 Acura with Mercedes with Volvo with Mercedes without Volvo without

Adaptive headlights

Adaptive headlights Property damage liability claim frequency by manufacturer 20% 10% 0% -10% -20% Acura Mazda Mercedes Volvo

Adaptive headlights Collision claim frequency by manufacturer 10% 5% 0% -5% -10% Acura Mazda Mercedes Volvo

Adaptive headlights Bodily injury claim frequency by manufacturer 20% 10% 0% -10% -20% Acura Mazda Mercedes Volvo

Adaptive headlights Collision claim severity by manufacturer $200 $150 $100 $50 $0 Acura Mazda Mercedes Volvo

Adaptive headlights Collision overall losses by manufacturer $10 $5 $0 -$5 -$10 Acura Mazda Mercedes Volvo

Lane departure warning

Lane departure warning without active assist Property damage liability claim frequency by manufacturer 20% 10% 0% -10% -20% Buick Mercedes Volvo

Lane departure warning without active assist Collision claim frequency by manufacturer 10% 5% 0% -5% -10% Buick Mercedes Volvo

Lane departure warning without active assist Bodily injury liability claim frequency by manufacturer 40% 20% 0% -20% -40% Buick Mercedes Volvo

www.iihs.org Dedicated to reducing deaths, injuries, and property damage on the highway