Industry Agreement on Safety Principles
Posted on Jan 18, 2016
18 car companies have joined the U.S. Department of Transportation in designing new automobile safety standards. These standards would reflect a proactive and collaborative approach to safety. Although the details have not been finalized, it is expected that auto companies will face pressure to include technology-aided safety features, such as automatic emergency braking, as standard on all automobiles. According to the “Proactive Safety Principles” document issued by the Department of Transportation and the automakers, the industry will also focus on recall participation rates and vehicle...
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New Guidelines for Autonomous Vehicles
Posted on Jan 15, 2016
The federal government has announced its intention to support the development of autonomous vehicle technology with new guidelines and nearly $4 billion in funding. At the North American International Auto Show, the Transportation Secretary stated that the administration expected to issue regulatory guidelines for autonomous vehicles within six months. The guidance would focus on the functions that autonomous vehicles should include to be considered safe. In order to aid the development of new safety features, the National Highway and Transportation Safety Administration may also exempt up...
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Expectations for the Property & Casualty Insurance Industry in 2016
Posted on Jan 15, 2016
The Insurance Information Institute has released the results of a survey of property and casualty insurance industry leaders. A majority of executives anticipate no increase in profitability for workers compensation, personal auto, homeowners, or commercial lines in 2016. Rather, executives expect increased regulatory scrutiny and attempts by the federal government to expand its role in regulating insurers. According to the survey, cyber insurance is seen as a growth area for insurers.
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Regulation of Autonomous Vehicles Likely to Remain at State Level
Posted on Jan 14, 2016
The United States Transportation Secretary, Anthony Foxx, has stated that there is no plan to implement national legislation governing autonomous vehicles. Mr. Foxx made the statement while speaking to the media at the CES technology trade show. He stated that federal regulation of safety and model legislation might be on the table in the future, but that at present, the focus of the federal government should be on quickly evaluating new technology.
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The Future of Tracking Devices and Usage-Based Insurance
Posted on Jan 13, 2016
According to the Wall Street Journal, some consumers have said they are wary of using tracking devices offered by insurers to assess their driving and potential for discounts for good driving. Insurance companies are increasingly using personal data to assess risk and fine-tune their pricing of policies—or at least to provide discounts. As insurers have tested tracking devices, they have learned that hard braking apparently is the most powerful predictor of accidents, and also that a mile driven at 2 am appears to be four or five times riskier than one driven at 7 am. Some consumers and...
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FTC Auto Distribution System Workshop Agenda Announced
Posted on Jan 12, 2016
The Federal Trade Commission has released its agenda and the panelists for its workshop on the U.S. auto distribution system, to be held on January 19, 2016. Panel topics will include state regulation of dealer networks, warranty reimbursement regulation, direct distribution, and future trends (including autonomous vehicles, connected cars, and car sharing services). Panelists will include industry representatives from companies like Tesla, Elio Motors, and Uber; trade groups such as the National Automobile Dealers Association, American Automobile Association, and New Jersey Coalition of...
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GM and Lyft Partner Up
Posted on Jan 11, 2016
General Motors and ridesharing company Lyft recently announced a historic new partnership. The two companies will work together in developing an on-demand network of self-driving vehicles, as well as short-term car rental vehicles for those who want to earn money as a Lyft driver. Significantly, GM will invest $500 million in Lyft, in what is reportedly the largest direct investment by an auto manufacturer in a U.S. ridesharing company.
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Pennsylvania House Passes Appraiser Act
Posted on Jan 11, 2016
The Pennsylvania House of Representatives has passed House Bill 1638, which amends a 1972 law removing a requirement that insurance appraisers be present for all auto inspections. The bill specifies that customers will still possess the right to choose how they want their vehicles inspected, paving the way for virtual inspections. The bill is currently before the Pennsylvania Senate.
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Top Personal Auto Insurers See Decline in Underwriting Profits
Posted on Dec 29, 2015
Fitch Ratings is reporting a dip in profitability in underwriting for private passenger auto insurance. The decline in profits over the first nine months of 2015 is due to increases in claim severability and claim frequency, which in turn may be caused by increased driving. These findings dispel predictions that recent technological innovations in vehicle safety would result in a decrease in claims this year.
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California Takes First Step Toward Regulation of Autonomous Vehicles
Posted on Dec 18, 2015
California has developed preliminary regulations for autonomous vehicles, anticipating the day when they will be offered for sale. The proposed rules impose additional certification requirements on users; permit manufacturers to lease, rather than sell, the driverless cars; and make the user, rather than the car, responsible for obeying the traffic laws. This latter requirement means that fully autonomous vehicles may not be welcome in California, as manufacturers must ensure that drivers are able to take control of the vehicle. Hearings on the proposed regulations are likely to begin in...
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FTC to Address U.S. Auto Distribution System
Posted on Dec 18, 2015
The Federal Trade Commission has announced that it will host a workshop on the U.S. auto distribution system on January 19, 2016 in Washington, D.C. The workshop is intended to focus on competition issues arising from state regulation of the distribution system, as well as how that regulatory environment may be affected by emerging trends in the auto industry. The FTC has invited public comment on questions related to dealer location regulations, warranty services and reimbursement, direct sales, and new developments and future trends. The comment period will be open through March 4,...
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The Potential Value of Telematics in Insurance Claims Handling
Posted on Dec 11, 2015
Through vehicle telematics, data on a wide variety of driving behaviors (acceleration, deceleration, braking, and more) can be obtained through the vehicle’s engine control units (ECUs). Such data is already being used by insurers in pricing and underwriting, but the new frontier for telematics could be claims handling. According to Donald Light, the director of Celent’s property/casualty insurance practice, vehicle telematics could help determine the allocation of responsibility in the event of an accident. For example, telematics could provide information on relative speeds, braking...
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US Regulators Seek To Upgrade Crash Safety Ratings and Test Dummies
Posted on Dec 10, 2015
The National Highway Traffic Safety Administration (“NHTSA”) has recently proposed to update its five-star crash-test rating system to account for changes in technology. The proposal was motivated in part by an increase in highway fatalities—despite a general decrease in such deaths over the past decade, the fatality rate rose by 8.1% in the first half of 2015. The NHTSA proposal would, for example, add a test that simulates frontal collisions from an angle (some of the deadliest highway crashes), give credit for the use of advanced crash-avoidance technology, and adopt the use of high-tech...
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New Samsung Development Team To Focus on Autonomous Vehicle Components
Posted on Dec 10, 2015
Samsung has recently announced its intention to create a team, separate from its existing business units, to focus on development of next-generation automobile components. The components will be designed for use in autonomous or internet-connected vehicles. The announcement, Samsung’s first official acknowledgement of its interest in the auto industry, comes on the heels of announcements of other companies (such as Google Inc., Apple Inc., and traditional competitors like Hyundai Motor Co.) to increase efforts in developing high-tech auto parts.
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