Tomorrow Today Safe-Driving Technologies of

Tomorrow, Here Today

Co-Sponsored by the

CPCU Personal Lines Interest Group

& the Information Technology Interest Group

Learn about technologies that are changing the driving experience

from assisting drivers to eliminating the need for them altogether

Explore regulatory and insurance industry changes and challenges

resulting from these new capabilities

Further meet customer expectations by gaining perspective from a

panel of experts on adopting and using new technologies

Learning Objectives

Opening Remarks

Need Section/Presentation Title

Kim Hazelbaker

Senior Vice President, Highway Loss Data Institute

Autonomous Vehicles in California

Bernard C. Soriano, PhD

Deputy Director, California DMV

Issues Raised by Autonomous Cars

Patrick B. Woods, FCAS, MAAA

Assistant Vice President & Actuary, Personal Automobile Actuarial,

ISO Insurance Programs and Analytic Services

Open Forum

Agenda

Crash Avoidance

Technologies Kim Hazelbaker

Senior Vice President, Highway Loss Data

Institute

www.hldi.org

www.hldi.org

The Insurance Institute for Highway Safety Founded in 1959

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 and by publishing insurance loss results by vehicle make and model.

Both organizations are wholly supported by auto insurers.

www.hldi.org

Member groups Acceptance Insurance

ACE Private Risk Services

Affirmative Insurance

Alfa Alliance Insurance Corporation

Alfa Insurance

Allstate Insurance Group

American Family Mutual Insurance

American National Property and Casualty Company

Ameriprise Auto & Home

Amica Mutual Insurance Company

Auto Club Enterprises

Auto Club Group

Auto-Owners Insurance

Aviva Insurance

Bankers Insurance Group

Bituminous Insurance Companies

California Casualty Group

California State Auto Group

Capital Insurance Group

Chubb & Son

Colorado Farm Bureau Mutual Insurance Company

Commonwealth Mutual Insurance Company of America

Concord Group Insurance Companies

COUNTRY Financial

CSAA Insurance Group

CSE Insurance Group

Direct General Corporation

Erie Insurance Group

Esurance

Farm Bureau Financial Services

Farm Bureau Insurance of Michigan

Farm Bureau Mutual Insurance Company of Idaho

Farmers Insurance Group of Companies

Farmers Mutual Hail Insurance Company of Iowa

Farmers Mutual of Nebraska

Florida Farm Bureau Insurance Companies

Frankenmuth Insurance

Freestone Insurance Company

Gainsco Insurance

GEICO Group

The General Insurance

Georgia Farm Bureau Mutual Insurance Company

Goodville Mutual Casualty Company

Grange Insurance

Hallmark Insurance Company

Hanover Insurance Group

The Hartford

Haulers Insurance Company, Inc.

Horace Mann Insurance Companies

ICW Group

Imperial Fire & Casualty Insurance Company

Indiana Farmers Mutual Insurance Company

Infinity Property & Casualty

Kemper Preferred

Kentucky Farm Bureau Insurance

Liberty Mutual Insurance Company

Louisiana Farm Bureau Mutual Insurance Company

Maryland Automobile Insurance Fund

Mercury Insurance Group

MetLife Auto & Home

Michigan Millers Mutual Insurance Company

MiddleOak

Mississippi Farm Bureau Casualty Insurance Company

MMG Insurance

Mutual of Enumclaw Insurance Company

Nationwide

New Jersey Manufacturers Insurance Group

Nodak Mutual Insurance Company

Norfolk & Dedham Group

North Carolina Farm Bureau Mutual Insurance Company

Northern Neck Insurance Company

Ohio Mutual Insurance Group

Old American County Mutual Fire Insurance

Old American Indemnity Company

Oregon Mutual Insurance

Pekin Insurance

PEMCO Insurance

Plymouth Rock Assurance

Progressive Corporation

QBE

The Responsive Auto Insurance Company

Rockingham Group

Safe Auto Insurance

Safeco Insurance

Samsung Fire & Marine Insurance Company

SECURA Insurance

Sentry Insurance

Shelter Insurance

Sompo Japan Insurance Company of America

South Carolina Farm Bureau Mutual Insurance Company

Southern Farm Bureau Casualty Insurance Company

State Auto Insurance Companies

State Farm

Tennessee Farmers Mutual Insurance Company

Texas Farm Bureau Insurance Companies

Tower Group Companies

The Travelers Companies

United Educators

USAA

Utica National Insurance Group

Virginia Farm Bureau Mutual Insurance

West Bend Mutual Insurance Company

Western National

Westfield Insurance

XL Group plc

Zurich North America

www.hldi.org

50th Anniversary

www.hldi.org

www.hldi.org

Forty Mile per Hour Frontal Offset Crash Test

1959 Chevrolet Bel Air and 2009 Chevrolet Malibu

www.hldi.org

www.hldi.org

Size of HLDI Passenger Vehicle Database Number of unique VINs in files, September 2014

Model Year Number of Vehicles

2005 16,045,166

2006 15,097,690

2007 14,819,925

2008 13,089,841

2009 8,559,498

2010 9,847,982

2011 10,358,232

2012 11,062,716

2013 11,253,485

2014 7,225,990

Total 117,360,525

www.hldi.org

Crash Avoidance Systems

www.hldi.org

www.hldi.org

Driver assistance features

Radar, LIDAR, ultrasonic, infrared, cameras, GPS

www.hldi.org

Mercedes Advertisement

www.hldi.org

www.hldi.org www.hldi.org

www.hldi.org

PDL Claim Frequencies for 2010-12 Volvo XC60 With

City Safety vs. Other 2009-12 Midsize Luxury SUVs

0

2

4

6

8

10Calendar years 2009-12

www.hldi.org

Volvo XC60 City Safety Updated Results

Vs. Other Volvos Claim

Frequency

Claim

Severity

Overall

Losses

Property damage

liability -8.3% -5.2% -1.9% $206 $291 $373 $0 $4 $7

Bodily injury -41.5% -33.7% -

25.0%

Collision -13.3% -11.4% -9.3% -$261 -$148 -$38 -$50 -$40 -$30

Vs. Other Midsize

Luxury SUVs

Claim

Frequency

Claim

Severity

Overall

Losses

Property damage

liability -16.0% -14.6% -13.1% -$89 -$42 $4 -$17 -$15 -$12

Bodily injury -37.6% -33.3% -28.7%

Collision -21.1% -20.2% -19.3% -$512 -$450 -$389 -$98 -$92 -$86

www.hldi.org

Collision Avoidance Technology

Acura

Adaptive headlights, collision mitigation braking

system (forward collision warning with auto brake

and adaptive cruise control) (blind spot warning)

Buick Lane departure warning, rear park assist

Infiniti

Adaptive headlights, adaptive cruise control,

adaptive cruise control with full stop, around view

monitor, brake assist, lane departure warning, lane

departure prevention, rear camera (advance brake

assist, low speed follow, forward collision warning

with auto brake)

www.hldi.org

Collision Avoidance Technology

Mazda Adaptive headlights, blind spot warning, rear

camera

Mercedes Benz

Adaptive headlights, adaptive head beam assist,

attention assist, active blind spot assist, blind spot

warning, distronic, DistronicPlus PreSafe brake,

lane departure warning, night view assist, night

view assist with pedestrian protection, ParkTronic,

rear camera (Distronic Plus, lane departure

prevention, park assist, park guidance)

Volvo

Adaptive headlights, blind spot warning, park

assist, rear camera (adaptive cruise control, lane

departure warning, forward collision warning with

auto brake)

www.hldi.org

Collision Avoidance Research Project Methods

Covariates

Calendar year, vehicle series and model year,

rated driver age, rated driver gender, rated driver marital status,

rated driver risk, state, registered vehicle density

Model years 2000-11

Calendar years 1999-2011

Modeling

approach

Only vehicles with features included, each feature

treated as a variable, model run for each coverage type

for frequency and severity

www.hldi.org

Forward Collision Warning

www.hldi.org

www.hldi.org www.hldi.org

www.hldi.org

Property Damage Liability Losses

for Forward Collision Warning

With Feature vs. Without

Claim

Frequency

Claim

Severity

Overall

Losses

Mercedes

with adaptive cruise

control

-12.0% -7.1% -1.9% -$100 $58 $225 -$10 -$4 $2

Volv