Collision Avoidance Systems Can Decrease Accidents 44%

Preliminary results from a study commissioned by Israel‘s ministry of finance and conducted by Ron Actuarial Intelligence indicate collision avoidance systems can reduce insurance claim frequency by 44 percent for privately owned vehicles compared to those without. Fewer accidents means increased safety and lower insurance costs for both insurers and customers, Ron Actuarial Intelligence said.

Collision Avoidance Systems (CAS) systems use radar, laser and camera sensors to detect an imminent crash and either warn the driver or act autonomously by braking, steering or both, Ron Actuarial Intelligence (Ron-AI) said. The study used software from SAS, and analytics applications provider, and MIA Computers. Data was provided by Israel’s ministry of finance and the Statistical Database of the Vehicle Sector, which includes insurance claims data since 1985 from all insurance companies in Israel.

Also see: Auto Injury Claims Increasing Faster than Inflaction Rate

Ron-AI analyzed the influence of forward collision warnings and lane departure warnings on bodily injury insurance claims frequency and costs. The model eliminated the impact of all other factors on claims frequency to derive the net impact of CAS on claims, Ron-AI said.

"In this preliminary research, we detect dramatic results that can reduce the price of insurance for CAS-equipped vehicles up to 15 percent,” said Ron Shachar, CEO and chief actuary of Ron-AI. “Research shows that these systems can reduce the number of accidents and save lives. SAS was a key tool for our analytics, based on the software’s data mining and analysis capabilities, along with the company's leadership in global technological and professional innovations."

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