Guide: ADAS system is developing rapidly in 2016, from high-end market to middle end market. The compound growth rate in the next five years is expected to maintain more than 20%. In 2020, the global ADAS market is estimated to be worth 20-30 billion US dollars, and China’s ADAS market will also reach more than 20 billion RMB in 2020. The ADAS system has unique advantages in auto insurance network. UBI is one of the hot topics in the development of insurance industry. Adas system is becoming a bridge between car owners and insurance industry.
Introduction of ADAS system
ADAS（Advanced Drive Assistance System, Advanced driving assistance system (ADAS), commonly known as active safety system, uses various sensors installed on the vehicle to sense the surrounding environment at any time during the driving process of the vehicle, collect data, identify, detect and track static and dynamic objects, and carry out systematic calculation and analysis combined with navigator map data, so as to make the driver aware of possible accidents in advance It can effectively increase the comfort and safety of car driving. At present, the automatic driving classification of NHTSA (National Highway Traffic Safety Administration) and SAE (American Society of Automotive Engineers) have been generally recognized. According to their classification, we can understand the subsystems of ADAS (Table 1)
At present, the installation rate of ADAS system in developed countries is about 10%, and the installation rate in China is only about 2%. This figure is rising with the gradual maturity of technology and the decline of product price. At present, ADAS is gradually infiltrating from high-end to mid-end models. At the same time, many low-cost technologies are applied to entry-level passenger vehicles. The market will be better in the future.
The influence of ADAS on the owners
We introduce the influence of ADAS on the owners of car by using an ADAS product which passed the car regulation test.
Leissure auto has developed ADAS products with independent intellectual property rights since 2012. After many failures and continuous attempts, after five years of technical grinding, leissure auto has launched car compliance products, which have four products for different users.
The product has two main functions: collision warning and lane departure warning in front, and it also includes the functions of real-time distance monitoring, virtual bumper, driving video, driving monitoring, prompt the departure of the front vehicle and vehicle condition monitoring.
ADAS, can early warning before the accident, and can train drivers’ driving habits. Insurance companies use big data analysis generated by ADAS system to collect all relevant data of customers (including every maintenance, every driving route, impact of every accident, status of automobile parts every day, and even every driving habit of customers) for real-time analysis. Because the data of each customer is unique, the insurance company can give customized insurance solutions, including the content of insurance and premium pricing, so as to accurately formulate the product pricing and underwriting model for each customer based on this, so as to improve the scientific and fair pricing of vehicle insurance.
ADAS’ influence on the market of automobile insurance: it mainly affects the automobile insurance from the perspectives of customer acquisition, underwriting, claim settlement, service and premium, but there are still some constraints.
UBI (usagebased insurance) is a personalized insurance product based on the driving behavior of the owner and the use of vehicle related data. In short, it is to locate the price of vehicle insurance by understanding the vehicle age, annual mileage, driving habits of owners (whether they like to drive violently or safely), and the number of violations. That is, the premium is priced according to dynamic factors such as people, cars and mileage.
ADAS system can effectively solve two technical bottlenecks in promoting UBI vehicle insurance model by domestic insurance companies.
First, it is difficult to form accurate pricing model of UBI vehicle insurance, and the control degree of domestic UBI vehicle insurance premium is low;
Secondly, it is difficult to identify and control the possible risk accidents of the owners after UBI vehicle insurance mode is adopted.
ADAS is the near stage goal of unmanned driving. At present, the technology is mature, and it is the first technology to realize commercial automatic driving in a large range. The combination of ADAS and UBI is very important.
But at present, there are some policy openness, data collection standards, industrial integration, insurance company cost input constraints, which is a challenge for practitioners. So far, UBI products have not been strictly available.
These challenges are also creating opportunities, which will not block the rapid development of UBI. With the deepening of the reform of vehicle insurance, the development of UBI will really start.
These technical advantages of ADAS are far ahead of schedule and directly reduce the incidence of accidents. The owner less accident, less insurance compensation, is the owner and the insurance market win-win, and ADAS is the bridge between the two.
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