Skip directly to search

Skip directly to content

 

Scores on the Door: Rating Autonomous Vehicles

 
 

Next Gen Insights | Robert Anderson |
12 July 2022

INTRODUCTION

The first time I got behind the steering wheel of a car, I was in awe of the power and autonomy it could provide. But as we know from Spider-Man, ‘With great power comes great responsibility’. The potential for me to get it wrong and cause major injury or even death when driving is the reason why I take the responsibility of driving so seriously. Insurance companies recognise the potential for damage as well, which is why your car insurance is often more expensive than your house insurance, even though a car is often less than a tenth of the cost of a house.

Self-driving cars, or autonomous vehicles, are going to change the face of insurance. Currently, the liability still clearly resides with the driver of the car, but at some point, that liability will shift to the technology driving the car. Now, instead of rating on the risk of the driver, insurers are going to have to rate on the risk of the algorithms behind the autonomous vehicle. In other words, they’re going to be rating technology and computer programmes. How can insurance companies do this without having to employ a number of computer engineers with deep knowledge of artificial intelligence and other technologies required by the autonomous vehicle?

STANDARDS CHECKLIST

There are a number of organisations out there that are working on creating standards for autonomous vehicles. There has been some great work by the likes of the Association of British Insurers, Thatcham, and the British Standards Institute. However, these are often working in silos and for specific markets only. My proposal is that an independent body should create an international standards checklist against which manufacturers of autonomous vehicles must assess. This checklist will need to cover the following aspects:

  • Technical, such as having redundant cameras and sensors in case of failure
  • Legal, such as compliance to the nation’s laws for vehicles on the roads
  • Ethical, such as prioritising human life over property


Insurance companies can then hire a specialist third party to go in and audit the vehicle manufacturers to ensure their compliance to the standards. There’s already a precedent for this kind of model in the card payments world. There, they have a standard called Payment Card Industry Data Security Standard (PCI-DSS). Any entity that wants to directly handle payments by a credit or debit card must meet the twelve main controls as specified in this standard. They prove this compliance by hiring a third party to audit them, and if they are compliant, they will be issued an Attestation of Compliance.

TRANSPARENCY

Insurance companies currently assign risk rating scores to autonomous vehicles, but it’s a bit of a dark art. There is no public source of information identifying how insurance companies are assessing the risk of certain autonomous vehicles. And even worse, there’s no transparency about what these scores are. Instead, they tell the manufacturer the rate of how much it will be to insure their vehicles, none of which is made public.

The results of the compliance against a checklist can be published, much in the same way that in the UK, restaurants have their health and safety scores on their front doors. This will enable people to make more informed decisions about which autonomous vehicles they want to buy.

As a consumer, wouldn’t you want to know if one autonomous vehicle has a higher risk score than another? I know I would like to buy the safer one, even if it’s slightly more expensive. And even if I choose to buy the cheaper car with a slightly worse risk score, at least I would know the exact trade-offs I’d be making.

INDUSTRY TRANSFORMATION

As responsibility shifts to manufacturers, the whole insurance model could be disrupted. For example, an autonomous vehicle manufacturer could bundle insurance as part of buying or leasing their cars. They could do this either through a partner, or they could have the capital to underwrite it themselves. This is notwithstanding the fact that insurance is bundled with the car with corporate car leases. Insurance companies will no longer be competing for individual drivers but for large contracts with organisations. This standards checklist will help set expectations across the board and ensure fair comparisons are being made when competing for these contracts. To provide a competitive advantage, some insurance companies might develop an internal capability to assess compliance to the standards.

FINAL THOUGHTS

With every change in society, there have been growing pains and learning points. With the advent of autonomous vehicles, we’re at another turning point. As such, it would be good to build upon the existing work and industrialise the individual initiatives for the benefit of all.

Robert Anderson

Principal Architect

Robert is an enterprise architect with 20+ years of IT experience and Endava’s principal architect for the insurance industry. His focus is on emerging IT trends, specifically those supporting customer experience, and ensuring that business objectives are met through strategic architecture. Robert has a proven track record of driving change through the adoption of best practices and industry standards. In his spare time, he is a photographer and has had his photos published in magazines, newspapers and photography sites around the world.

 

Related Articles

  • 17 December 2019

    Demystifying omnichannel and making it a reality

  • 07 May 2019

    Failure to launch - Why contactless in the US is behind the rest of the world

  • 08 April 2019

    Get Emotional - How Feelings Dominate Decision Making

  • 04 February 2019

    Can a business thrive in the age of continuous innovation?

  • 07 January 2019

    Delivering Business Value at Speed: A Recipe in Three Steps

 

From This Author

  • 21 June 2022

    Intelligent Commercial Underwriting

  • 24 May 2022

    Going Native: Why Cloud-Native Services are Essential

  • 12 January 2022

    Buy or Build? A Game-Changing Question in Insurance

Most Popular Articles

Current Challenges in the Transportation & Logistics Industry
 

Transportation & Logistics Insights | Brian Estep | 22 March 2022

Current Challenges in the Transportation & Logistics Industry

hi, I’m Brian Estep
 

Meet the SME | Brian Estep | 09 August 2022

hi, I’m Brian Estep

The New Ways of Issuing Cards
 

Payments | Peter Theunis | 19 July 2022

The New Ways of Issuing Cards

How to Improve Intelligent Energy Storage Systems Using AI
 

AI | Uros Bajec | 05 October 2021

How to Improve Intelligent Energy Storage Systems Using AI

4 Buy Now Pay Later Trends Set to Disrupt the Industry
 

Payments | Annmarie Mahabir | 22 February 2022

4 Buy Now Pay Later Trends Set to Disrupt the Industry

How the Board Game Catan Conquered the Digital World
 

Innovation | Moritz Hampel | 27 July 2021

How the Board Game Catan Conquered the Digital World

Top Challenges in Warehouse and Distribution Centers
 

Transportation & Logistics Insights | Brian Estep | 01 March 2022

Top Challenges in Warehouse and Distribution Centers

We’re in Nottingham – a Q&A on Endava’s New Delivery Centre in the UK
 

The Endava Experience | Nick Madge | 06 July 2022

We’re in Nottingham – a Q&A on Endava’s New Delivery Centre in the UK

A Payments View on Marketplaces – How to Be(come) Successful
 

Payments | Andy Davies | 23 June 2022

A Payments View on Marketplaces – How to Be(come) Successful

 

Archive

  • 09 August 2022

    hi, I’m Brian Estep

  • 02 August 2022

    hey! I’m Lia Rollman

  • 19 July 2022

    The New Ways of Issuing Cards

  • 12 July 2022

    Scores on the Door: Rating Autonomous Vehicles

  • 06 July 2022

    Data-Driven Impact: Don’t Settle for Less

  • 06 July 2022

    We’re in Nottingham – a Q&A on Endava’s New Delivery Centre in the UK

  • 05 July 2022

    hey, I’m Chris Hart

  • 28 June 2022

    Platforms: a Blessing or a Curse?

  • 23 June 2022

    A Payments View on Marketplaces – How to Be(come) Successful

  • 21 June 2022

    Intelligent Commercial Underwriting

  • 14 June 2022

    The Future of Supply Chain: What’s Next?

  • 31 May 2022

    The Future of Autonomous Vehicles in T&L

  • 26 May 2022

    hello! I’m Hannah McCarthy

  • 24 May 2022

    Going Native: Why Cloud-Native Services are Essential

  • 19 May 2022

    How to Tackle Legacy – Breaking Down Walls Between Change and Run

  • 17 May 2022

    Advantages of a Yard Management System

  • 12 May 2022

    Are Phones About to Become the New POS Terminals?

  • 10 May 2022

    The Digital Economy is an Upgrade of Smart Cities and Communities

  • 05 May 2022

    hello! I’m Sumita Davé

  • 03 May 2022

    Physical Automation in the T&L Industry

  • 28 April 2022

    zdravo! I’m Andrej Kotar

  • 26 April 2022

    Open Banking in the US

  • 20 April 2022

    hello! I’m Paul Maguire

  • 19 April 2022

    Digital Automation in the T&L Industry

  • 12 April 2022

    How Do Banks Embrace Embedded Finance – Have the Fintechs Already Won?

  • 06 April 2022

    ESG Data Architecture is a Business Imperative – How to Get Started

  • 05 April 2022

    hi! I am Roy Murphy

  • 05 April 2022

    Modernizing the Shipping and Cargo Process

  • 30 March 2022

    The Metaverse Evolution and Learning from the Games Industry

  • 29 March 2022

    Do Androids Dream of Trading Electric Sheep for Digital Wood? An Introduction to Automated Game Design

  • 23 March 2022

    Real-Time Payments in Australia – Why Corporates Should Get on Board

  • 22 March 2022

    Current Challenges in the Transportation & Logistics Industry

  • 16 March 2022

    bok! I’m Sanja Cvetkovic

  • 15 March 2022

    Rapidly Transforming: Healthtech Trends in 2022

  • 08 March 2022

    How to Digitize Warehouses and Distribution Centers

  • 01 March 2022

    Top Challenges in Warehouse and Distribution Centers

  • 28 February 2022

    Tackling CIB Legacy at its Core

  • 23 February 2022

    salut! I am Isabela Buhai

  • 22 February 2022

    4 Buy Now Pay Later Trends Set to Disrupt the Industry

  • 15 February 2022

    salut! I’m Natalia Ciobanu

  • 14 February 2022

    Product-Led Innovation – a Q&A with Joe Dunleavy

  • 01 February 2022

    Buy Now Pay Later: Will Regulation Burst the Bubble?

  • 31 January 2022

    Innovation Will Spur Ireland’s Race to the Top

  • 28 January 2022

    The Value of Digital and Automation in the Product Returns Process

  • 26 January 2022

    Virtually Disrupted? Keeping Pace with Accelerating Customer Expectations

  • 19 January 2022

    The 3 Big Ps in Modern Insurance: Personalisation, Prediction and Prevention

  • 18 January 2022

    An Introduction to Mobility as a Service in the US

  • 12 January 2022

    Buy or Build? A Game-Changing Question in Insurance

  • 12 January 2022

    hello! I’m Paul Willoughby

  • 11 January 2022

    Payment Service Providers 2.0

  • $name

We are listening

How would you rate your experience with Endava so far?

We would appreciate talking to you about your feedback. Could you share with us your contact details?