How the advance of ADAS will force insurers to change their risk model

Susan Kuchinskas looks at how ADAS’s effect on lowering risk will impact on insurers’ bottom lines [Ins.Kuckinskas.2015.08.06] In May, both Euro NCAP and the Australasian New Car Assessment Program said they had found that low-speed autonomous emergency braking (AEB) technology leads to a 38% reduction in real-world, rear end crashes. The organisations said they'd make AEB technology a key metric in the safety rating of new vehicles. Insurers in the UK are already responding with lower rates for cars equipped with AEB. In May, Thatcham Research Group did a study in which it obtained 500 insurance quotes for five pairs of cars, identical except that one of the pair had AEB.