2024 Crash Course on Vehicle Technology and Automation

Description:

As of 2020, the majority of new vehicles sold in the U.S. have standard front AEB but that does not mean the performance of AEB has been standardized or that the evolution other ADAS technologies has stalled.  Recent research from the IIHS and HLDI reveals that there are significant differences in the performance of these systems.  Presenters will discuss differences in the test track performance, driver utilization, crash rates and loss results for the most current driver assistance technologies.

Learning Objectives:

• Explore collision, PDL, BI, MedPay, and PIP differences in frequency, severity, and overall losses for different ADAS features and bundles.
• Learn about AEB ratings criteria and the performance results of recent updates to the testing program.
• Understand how drivers use these systems and the types of crashes that are still occurring even when vehicles have these systems. 

Speakers:

• Matt Moore is senior vice president of the Highway Loss Data Institute, where he oversees HLDI's research program, the collection of vehicle information and the production of loss data. HLDI processes insurance data from companies that represent approximately 85% of the U.S. private passenger auto insurance market. Matt joined HLDI in 1999 as a programmer. During his 20 years at HLDI, Matt has held a variety of positions of increasing responsibility and scope. He is the author of numerous research papers and has led several projects that resulted in studies that were world firsts on topics such as collision avoidance technologies, legal recreational marijuana and antilock braking systems for motorcycles. Before coming to HLDI, Mr. Moore worked in higher education, conducting institutional research, designing data systems and creating web sites. He holds an M.B.A. and a bachelor's degree from Saint Francis University in Pennsylvania.
• Jessica B. Cicchino is senior vice president for research at the Insurance Institute for Highway Safety. Dr. Cicchino conducts research in a number of areas, including collision avoidance technologies and older drivers. Prior to joining the Institute as a research scientist in 2012, she was a research psychologist at the National Highway Traffic Safety Administration. Dr. Cicchino received a bachelor's degree from Vassar College and a doctorate in psychology from Carnegie Mellon University.
• David Aylor is vice president of active safety testing at the Insurance Institute for Highway Safety. Mr. Aylor has worked at IIHS since 2004 and has been closely involved with all its testing programs. Most recently, he helped develop the evaluation program for front crash prevention systems. His areas of research include rear impact, low-speed damageability, and crash avoidance technology. Mr. Aylor received a bachelor's degree in mechanical engineering from the University of Virginia.

Capability Model Tags:

• S:BA:L1: Applies knowledge of the insurance products within which one’s employer operates.
• S:BA:L3: Understands and explains the business implications of decisions and strives to improve organization performance.
• S:BA:L1: Applies knowledge of the insurance products within which one’s employer operates.

Description:

Autopilot, Blue Cruise, Full Self-Driving, ProPILOT Assist, Super Cruise, Teammate, and similar features promise to make driving easier and safer. This session will share IIHS–HLDI research on how drivers are using this new technology and what insurance, and crash data can tell us about it. The session will also dive into our new partial automation safeguard ratings, which evaluate how well these systems prevent driver misuse.

Learning Objectives:

• Describe the impact of partial driving automation on claim frequency and how many vehicles actually have these systems on them.
• Learn how drivers are using these systems and how their behavior differs from driving without these systems.
• Understand the safeguards that can be put in place to ensure proper usage of these systems and how IIHS-HLDI is evaluating these safeguards. 

Speakers:

• Matt Moore is senior vice president of the Highway Loss Data Institute, where he oversees HLDI's research program, the collection of vehicle information and the production of loss data. HLDI processes insurance data from companies that represent approximately 85% of the U.S. private passenger auto insurance market. Matt joined HLDI in 1999 as a programmer. During his 20 years at HLDI, Matt has held a variety of positions of increasing responsibility and scope. He is the author of numerous research papers and has led several projects that resulted in studies that were world firsts on topics such as collision avoidance technologies, legal recreational marijuana and antilock braking systems for motorcycles. Before coming to HLDI, Mr. Moore worked in higher education, conducting institutional research, designing data systems and creating web sites. He holds an M.B.A. and a bachelor's degree from Saint Francis University in Pennsylvania.
• Jessica B. Cicchino is senior vice president for research at the Insurance Institute for Highway Safety. Dr. Cicchino conducts research in a number of areas, including collision avoidance technologies and older drivers. Prior to joining the Institute as a research scientist in 2012, she was a research psychologist at the National Highway Traffic Safety Administration. Dr. Cicchino received a bachelor's degree from Vassar College and a doctorate in psychology from Carnegie Mellon University.
• David Aylor is vice president of active safety testing at the Insurance Institute for Highway Safety. Mr. Aylor has worked at IIHS since 2004 and has been closely involved with all its testing programs. Most recently, he helped develop the evaluation program for front crash prevention systems. His areas of research include rear impact, low-speed damageability, and crash avoidance technology. Mr. Aylor received a bachelor's degree in mechanical engineering from the University of Virginia.

Capability Model Tags:

• T:AN:L1: Applies statistical methods and actuarial methodologies in solving business problems.
• S:BA:L3: Understands and explains the business implications of decisions and strives to improve organization performance.
• T:CR:L2: Designs effective solutions through in-depth understanding of business problems.

Description:

The fleet of electric cars in the United States is growing, while the average vehicle is older than ever. More Americans are working from home, but accidents and fatalities are rising. There is evidence that reckless driving increased after COVID.   The cost of auto repairs and replacement parts continues to increase and inflation in automobile insurance prices continues to exceed the Consumer Price Index inflation rate. This is the New Normal for Personal Auto Insurance.

One of the most challenging tasks facing actuaries is predicting emerging trends. How can we evaluate the impact of newer technologies, such as advanced driver assistance systems (ADAS) and electric vehicles on Automobile Insurance costs? What role does internal company data play?  What role does external data such as the data collected by HLDI play? In addition to changing trends, risk-based pricing for auto insurance is also dynamically evolving as the risk of vehicles, repair costs of vehicles, and prices of vehicles all enter a new era of volatility with OEMs adding features and options at a rate seemingly unprecedented in the history of vehicles.

This session aims to inform actuaries on emerging risks in automobile insurance and to encourage debate on how to assess trends in a changing environment. It will also explore an analytics framework where deeper understanding of features, values, and capabilities will set the stage for the next decade of better governance, data, models, and decisions for risk across the insurance value chain.

Learning Objectives:

• Understand emerging trends in auto insurance and the drivers of the trends
• Identify tools available to help actuaries asses trends and detect changes in trend
• Discuss case study in understanding and managing personal auto trends
• Understand how market forces in retail vehicle production and sales in recent years have changed the underlying data assumptions embedded in current insurance ratemaking.
• Understand that while the value of a vehicle is simply a characteristic of a physical object, the way it dynamically influences claim processes has impact on ratemaking too.
• Compare how your own company approaches dynamic changes in vehicle values as well as loss costs as they relate to profitability. 

Speakers:

• Louise Francis, FCAS, CSPA, MAAA is the Consulting Principal and founder of Francis Analytics and Actuarial Data Mining.  

  Ms. Francis has introduced insurance professionals to advanced modeling methods, including predictive modeling and reserve variability modeling, both as a speaker at conferences and as an author of papers and articles. 

  Ms. Francis is a former VP Research for the CAS. Ms. Francis was a winner of the CAS’ Matthew Rodermund award for her lifetime contributions as a volunteer.

  Ms. Francis received her Bachelor of Arts degree from William Smith College and a Master of Science degree in Health Sciences from the State University of New York at Stony Brook.

• Marty Ellingsworth is the President of Salt Creek Analytics. Marty Ellingsworth brings extensive career and industry experience in creating value from digital assets. His longstanding accomplishments in both personal and commercial lines include productizing deep industry knowledge with data and advanced analytics in risk assessment, rating, customer experience, claims servicing, and fraud prevention.

  Marty has served at many prestigious brands. Recently, he was the executive managing director for insurance at J.D. Power and prior to that, he was a specialist industry analyst at Celent (part of Marsh/Oliver Wyman), he was also an executive at USAA focusing on advanced analytics and machine learning. Before USAA, he held significant roles as a consultant at a venture-backed insuretech text analytics start-up, an insurance carrier leader with Fireman’s Fund, and as an executive for innovation at Verisk Analytics (also known as ISO). His earlier career included roles in healthcare and in the United States Air Force.

  Marty’s research focuses on helping insurance companies build data-driven, customer-centric digital enterprises. He does this by finding more and better data, creating smarter and more accurate analytics, and, developing faster to real-time decisioning solutions. His passion is to permit ease of doing business with value priced accurate risk management. Marty has a special interest in customer centricity and how risk and financial products fit actual living situations at home and on the job.

  Marty has a bachelor’s in operations research from the United States Air Force Academy and a master’s in operations research from the Air Force Institute of Technology.

Capability Model Tags:

• C:PC:L3: Emerging trends in the industry relevant to one’s practice area and role and demonstrate thought leadership in predicting the impact of these emerging trends.
• C:RM:L2: The skills to assess the risk tolerance of stakeholders, monitor key risk drivers, evaluate potential stresses and potential emerging risks, and develop contingency plans.
• S:CT:L3: Designs innovative solutions to solve complex problems and deliver results.
• S:BA:L1: Applies knowledge of the insurance products within which one’s employer operates.
• T:CO:L3: Applies knowledge of the complex dynamics at the corporate or industry level and how various business functions interact while cultivating collaboration to understand what to do in any given situation.

Description:

The fundamental design of automobiles has changed significantly over the last 30 years.  The structure, power plant, drivetrain, metals, glass, and even paint have all undergone massive transformations.  All of these can impact claim frequencies, claim severities and cycle times.   This presentation will cover the things that actuaries need to know in order to contextualize analytics about automobiles.

Learning Objectives:

• Understand how vehicles have changed over the past 30 years in structure, construction, power source, glass, paint, and more.
• Learn how these changes have impacted claim frequencies, repair cycles, and claim severities. 

Speakers:

• Kay Wakeman is the director of insurance outreach for the Insurance Institute for Highway Safety and the Highway Loss Data Institute. Kay joined HLDI in 2015 as a research analyst, studying collision avoidance technologies such as pedestrian detection and rear crash prevention. She continues to play an active role on HLDI’s research team but now also spends much of her time speaking at industry conferences and promoting research and resources available to member companies. Prior to joining the Institutes, Kay worked as a geographic information systems specialist and received a master’s degree in mathematics from Loyola University Chicago.
• Marty Glomb is a Senior Learning Facilitator at Travelers Insurance Claim University. He began his career at Travelers more than 38 years ago as an Appraiser Trainee. Over the years he progressed through various roles in the Claim Department. He was the Director of all Auto Physical Damage for 11 western states and then found the best role ever at Claim University. Marty specializes in auto, specialty and heavy equipment training for Travelers appraisal staff. One of Marty’s passions is helping people learn and is so thankful for the opportunity to do what he loves. Marty’s greatest passion is being a car and truck nut!!

Capability Model Tags:

• S:BA:L3: Understands and explains the business implications of decisions and strives to improve organization performance.
• T:AN:L1: Applies statistical methods and actuarial methodologies in solving business problems.

Description:

Auto insurers are now confronted with accidents where new questions presented:

• Is the insured’s report of the loss accurate and how does it align with car data?
• What role did technology play in increasing the risk and who bears that responsibility?
• What does Vehicle Performance Data look like, how can insurers access it, and how can it be used?
• Do regulators care about VPD and if so, how much?
• Actuaries speak - what do you think about insurers being put in the position of using VPD and Video - how will these dynamics mature over time?

The observations to these questions and many more will be developed in a workshop setting with a high degree of interaction.

Learning Objectives:

• Explore the accuracy of loss reports by customers and what role technology can play.
• Learn about what vehicle performance data is and how it can be accessed.
• Discuss how insurers may or may not be able to use video and vehicle performance data, and what impact this can have on regulators.

Speaker:

• Mike Nelson is the Chairman and Founder of QuantivRisk, Inc., a risk management, and technology company. QuantivRisk provides technology for insurance companies, law enforcement and other organizations that must adapt to the technological advancements impacting the transportation sector. Mike also practices law at the boutique law firm he founded, Nelson Law LLC (www.nelson.legal), with offices in New York, Cleveland and Washington, D.C.

  Mike is a self-described “mobility nerd”, trial attorney, and strategist. He draws on his lifelong experience in the mobility sector. Many professionals claim to understand these unusual risks. But few, if any, have the 40 years of experience Mike has enjoyed as an automotive mechanic, claims adjuster, business owner, insurance industry leader, regulatory attorney, and strategist. He now owns two Level 2 automated electric vehicles: a 2022 Tesla Model Y and a 2022 Rivian RT1 and previously owned two other Tesla’s, one of which he drove from California to New York City in 2017. Nelson is also an active member of the Society of Automotive Engineers (SAE) and serves on SAE’s Event Data Recorder committee (J1698) and SAE’s Advanced Driving System Data Logger Working Group Task Force (J3197).

  Mike began his professional career in 1981 with Met Life Auto & Home where he started as a claims adjuster trainee and departed Met in 1992 as its regional claim executive for Met’s mid-Atlantic region. Mike’s legal career life is built upon his 32 years as a commercial litigator and regulatory attorney. Mike’s litigation experience includes class action, multidistrict litigation, trial, and appellate work. He has litigated matters in most states in the United States, is licensed in five states, and admitted to practice in 20 U.S. district and circuit courts and the U.S. Supreme Court. Mike was appointed to and currently serves on the RAND Corporation’s Institute for Civil Justice Board of Advisors.  Mike serves on the Board of Directors for Partners for Automated Vehicle Education (PAVE) a coalition of industry, nonprofits, and academics with the goal of informing the public about automated vehicles and their potential.

Capability Model Tags:

• S:BA:L1: Applies knowledge of the insurance products within which one’s employer operates.
• S:BA:L3: Understands and explains the business implications of decisions and strives to improve organization performance.
• T:IA:L2: Looks for opportunities to apply new knowledge in business context and to teach others.

Description:

This session will explore how Advanced Driver Assistance Systems (ADAS) are transforming the insurance landscape by enhancing vehicle safety, reducing accident frequency, and enabling more accurate risk assessments. We will delve into the opportunities and challenges these technologies present for insurers. Join us to discover how ADAS is driving the future of auto insurance.

Learning Objectives:

• Learn about emerging trends in Advanced Driver Assistance Systems (ADAS) and how the industry is responding to these trends.
• Gain insight into how third-party data is being utilized to identify vehicle features and the challenges the industry is encountering while using this data.

Speakers:

• Joe Griffin has considerable experience in telematics-based scoring, personal lines predictive analytics, territorial ratemaking and vehicle symbol development. He also has unique experience working with connected-car data. Joe has worked extensively with insurance company product teams as they deploy innovative products like telematics programs for top ten insurance carriers. Joe has a deep understanding of the regulatory filing process for rate service organizations, as he led the filing team for a telematics-based insurance scoring company for several years. He also has experience designing and deploying embedded insurance offerings for Original Equipment Manufacturers (OEMs), which includes liaising with privacy, legal, engineering, brand, insurance
• Jeff Kinsey is Assistant Vice President & Actuary for State Farm Mutual Automobile Insurance Companies. His role as Assistant Vice President & Actuary includes responsibility for actuarial and underwriting modeling and research for the insurer’s private passenger auto line of business. Jeff joined State Farm® in 2003 and has served in a variety of leadership positions. He assumed his current position in 2021. He earned the Fellow of the Casualty Actuarial Society (FCAS) designation 2012; Chartered Property Casualty Underwriter (CPCU) in 2016; Chartered Financial Consultant (ChFC) in 2017; Chartered Life Underwriter (CLU) in 2017; and Certified Specialist in Predictive Analytics in 2017.
• David Savoia is an Associate Actuary at Allstate Insurance Company. He began his career with Allstate in 2016 and currently manages a modeling team supporting specialty lines. David started as a traditional pricing analyst focused on auto and home ratemaking activities in the states of OK, NM, UT, NV, and AZ. David has since developed extensive vehicle data expertise and has spearheaded numerous modeling projects in the auto and vehicle space. Most recently, he led the development and implementation of Allstate's latest personal auto predictive model. David is a proud alumnus of Marquette University, where he earned his Bachelor's degree in Computational Mathematics.

Capability Model Tags:

• C:PC:L3: Emerging trends in the industry relevant to one’s practice area and role and demonstrate thought leadership in predicting the impact of these emerging trends.
• S:DA:L1: Reviews and evaluates data (e.g., data cleaning, confirm integrity), manipulates data through aggregation and exploration, and documents findings.

Description:
Commercial vehicle technology is advancing at a rapid pace and actuaries need to understand the implications for insurance. There has been a significant increase in the availability of safety and partial driving automation features on trucks and other vehicle types used in commercial lines operations. Meanwhile, autonomous transportation networks are expanding with a growing number of Level 4 fully autonomous vehicles that are transitioning to driver-out operations.

This session will discuss the safety and partial automation features available on commercial vehicles and trucks, and how this data can be incorporated into an analysis of the impact of these features on loss costs. We will discuss results of a case study demonstrating:

1. Key safety and automation features that impact loss costs
2. The interaction of the impact of safety and automation features with other policy characteristics

We will then discuss approaches for quantifying fully autonomous vehicle risks and discuss how actuaries can develop reasonable modeling techniques despite limited data. The goal is to share how autonomous vehicles are being handled in ratemaking and underwriting exploring:

1. How autonomous systems perform relative to their human peers
2. The role of safety engineers in developing safe autonomous vehicles and how actuaries can incorporate their expertise into modeling

Learning Objectives:

1. Describe the safety and autonomous features available on commercial vehicles, assessing both partial (Level 1-2) and full (Level 4) autonomous systems.
2. Design appropriate modeling approaches to understand the loss cost impact of autonomous vehicle technology.
3. Communicate results of the analysis on partially and fully automated commercial vehicles and incorporate into existing ratemaking and underwriting frameworks.

Speakers:

• Roosevelt Mosley, FCAS, CSPA, is Pinnacle Actuarial Resources’ Managing Principal. His skill set includes predictive analytics applications for all insurance functions, ratemaking and product development, strategic reviews, competitive analyses, and litigation support.

  Roosevelt performs extensive competitive analyses to evaluate insurer company competitiveness and to develop rating plans for new states and lines of business. He performs external peer reviews of insurance companies’ internal model development processes and provides recommendations for improving the modeling process and the resulting rating plans. Roosevelt also conducts reviews of company strategy to ensure operations and analytics are aligned with the strategic direction.

  Roosevelt is recognized as an industry expert in the analysis of unfair discrimination and bias in rating. Roosevelt is on the leading edge of research on this issue, and also provides services to clients in this area, including testing insurance company processes and providing training.

  Roosevelt is the current chairman of the board of directors, immediate past-president and has served as vice president of marketing and communications for the Casualty Actuarial Society. He is also a member of the Board of Directors of the International Association of Black Actuaries Foundation and is an Emeritus trustee of the Actuarial Foundation.

• Michael Wagner, is the CEO at Edge Case Research and has been at the forefront of the autonomy industry for over twenty years. Michael's career began at Carnegie Mellon University where he developed planetary rovers for NASA, then expanding his focus to defense applications. During this time, he witnessed autonomy commercializing rapidly, but realized that safety engineering techniques weren't keeping up. As a result, today developers can demonstrate cars navigating highways comfortably without human intervention, but few can say whether their autonomous technology is safe enough for wide-scale deployment. Solving this problem has been the focus of Michael's career since 2006. He began major R&D efforts at Carnegie Mellon to understand how automation could be applied to autonomy validation. Seizing developing commercial opportunities in self-driving cars, he founded Edge Case Research in 2014. Under Michael's leadership the company has grown substantially, becoming a global safety data and analytics company. Edge Case provides risk management and insurance solutions for developers and operators of autonomous vehicles in commercial and defense markets.
• Drew Groth, ACAS, MAAA, is an associate actuary who leads teams performing actuarial functions, particularly loss reserving, ratemaking, and predictive modeling. He has been at Milliman for over a decade, honing his expertise in auto (commercial and personal), general/product liability, and workers' compensation. Drew specializes in quantifying liabilities and tailoring insurance solutions for novel risks, most notably autonomous vehicles (AV), a topic he has given numerous presentations on at events hosted by the CAS and various other insurance organizations. He is also a published author and has been featured in Carrier Management, Risk & Insurance, and Leader’s Edge discussing the state of commercial auto and AV.

Capability Model Tags:

• C:PC:L3: Emerging trends in the industry relevant to one’s practice area and role and demonstrate thought leadership in predicting the impact of these emerging trends
• C:MM:L2: Model design and selection to replicate a real-world process, evaluate model inputs, and interpret results.
• T:AN:L1: Applies statistical methods and actuarial methodologies in solving business problems.

Description:

In a crash test, a single dummy stands in to represent a diverse adult population. Vehicle testing has spurred safety improvements, yet disparities still exist, and women are at particular risk. However, addressing safety for women is not as simple as merely using a female dummy in the driver’s seat. Learn why risk differences exist, what crash tests get right and where there is still room for improvement.  This presentation will shed light on the importance of considering diverse populations and thinking beyond crash test dummies to enhance safety for everyone on the road.

Learning objectives:

• Learn which dummies are currently used in crash test and why those dummies are used.
• Understand crash risk differences for different groups of people and how this can be addressed in crash testing. 
• Identify areas of improvement for understanding crash risk using dummies. 

Speaker:

• Jessica Jermakian is vice president for vehicle research at the Insurance Institute for Highway Safety. Dr. Jermakian joined the Institute in 2009 and has conducted research on topics ranging from crash avoidance and crashworthiness to child passenger safety. Prior to joining the Institute, Dr. Jermakian worked for Nissan North America and The Children's Hospital of Philadelphia. She received her doctorate in Transportation Safety Engineering from The George Washington University.

Capability Model Tags:

• C:PC:L3: Emerging trends in the industry relevant to one’s practice area and role and demonstrate thought leadership in predicting the impact of these emerging trends.
• S:DA:L3: Works with complex data, across data sources, sets data governance standards, and provides business critical insights.
• T:IA:L2: Looks for opportunities to apply new knowledge in business context and to teach others.