Over the years, an increase is being witnessed in vehicle safety technology in form of ADAS features such as blind spot intervention, lane departure prevention, and forward collision warning, in a number of cars.
Keeping this in view ISO has released new rule and rating factors that will help auto insurers underwrite and price coverage for such cars. It is known that ISO is a Verisk business and a provider of forms, rules, and rating information for the property/casualty insurance industry.
The new solutions include a manual rule and related rating factors for the ISO Personal Auto Program. According to ISO, the rating factors are based on an in-depth actuarial analysis that included a review of loss data reported through the ISO Personal Auto Statistical Plan.
A key finding of the analysis showed that ADAS features have reduced accident frequency, but the effect is somewhat offset by the expense of repairing vehicles with ADAS technology after an accident. However, ISO expects collision experience to improve with time as more vehicles with ADAS features hit the road and frequency of accidents continues to drop. Also, as these features become more common, economies of scale in producing associated sensors and other parts may reduce their cost.
To complement the release of the new rating factor, Verisk also offers VINMASTER -VINterpret Safety. It provides electronic delivery of ADAS information using a 10-digit vehicle identification number (VIN), helping insurers determine which vehicles have certain ADAS technology as standard or optional features.
Source: Press Release