Collision avoidance systems can decrease accidents 44%: preliminary findings

Insurance claim frequency in Israel dropped by approximately 44% for privately owned vehicles equipped with collision avoidance systems (CAS) compared to those without, suggests preliminary findings of a study commissioned by Israel’s Ministry of Finance and carried out by Ron Actuarial Intelligence.

Fewer accidents means increased safety and lower insurance costs for both insurers and their customers, notes a statement issued last week by business analytics firm SAS, which, along with MIA Computers, provided the software used in the study.

Using radar and sometimes laser and camera sensors to detect an imminent crash, CAS systems either warn the driver or act autonomously without any driver input by braking, steering or both, the statement notes.

The preliminary findings from Ron-Al – which, in Israel, operates and manages a central database of all the motor bodily injury insurance data of general insurers in the country – show that CAS improves safety, reduce insurance premiums and increase revenues.

Data from Israel’s finance ministry and the Statistical Database of the Vehicle Sector (which includes insurance claims data since 1985 from all insurance companies in the country) was examined. The research involved analyzing the influence of forward collision warning and lane departure warning 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.

“In this preliminary research, we detect dramatic results that can reduce the price of insurance for CAS-equipped vehicles up to 15%,” Ron Shachar, CEO and chief actuary of Ron-AI, says in the statement. “Research shows that these systems can reduce the number of accidents and save lives,” Shachar says, adding that SAS software “was a key tool for our analytics.”

“The wise use of analytical tools is a powerful strategy in re-inventing the world of business by improving profitability, reducing costs to customers, and as we have seen in this case, safeguarding human life,” notes Kobi Bitter, CEO of MIA Computers.