Using SAS® software, Ron Actuarial Intelligence shows that collision avoidance systems can decrease accidents 40 percent, improve safety, reduce insurance premiums, increase revenues
Cary, NC (May 5, 2014) – Nearly 3,400 people die on the world’s roads every day. Can technology help prevent this top-10 leading cause of death?
In 2013, Israel’s Ministry of Finance commissioned Ron Actuarial Intelligence to investigate the effectiveness of collision avoidance systems (CAS), an auto-safety system designed to reduce accidents. The preliminary results are striking: Insurance claim frequency dropped by approximately 44 percent for privately owned vehicles equipped with CAS compared to those without. Naturally, fewer accidents means increased safety and lower insurance costs – for both insurers and their customers. The study used software from business analytics leader SAS with MIA Computers.
CAS systems use radar and sometimes laser and camera sensors to detect an imminent crash. They then either warn the driver or act autonomously without any driver input by braking, steering or both.
The research examined data from the Ministry of Finance and the Statistical Database of the Vehicle Sector in Israel, which includes insurance claims data since 1985 from all insurance companies in Israel. Ron-AI analyzed the influence of FCW (forward collision warning) and LDW (lane departure warning) on bodily injury insurance claims frequency and costs in Israel. The model eliminated the impact of all other factors on claims frequency in order 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 percent,” said Ron Shachar, CEO and Chief Actuary of Ron-AI. “Research shows that these systems can reduce the number of accidents and save lives. SAS® was a key tool for our analytics, based on the software’s data mining and analysis capabilities, along with the company’s leadership in global technological and professional innovations.”
Kobi Bitter, CEO of MIA Computers, added, “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.”
Learn more about how SAS solutions can help insurers.
About Ron Actuarial Intelligence
In Israel, Ron-AI’s core business is to operate and manage a central database of all the MBII (motor bodily injury insurance) data of general insurers, serving insurers, the Insurance Regulator in Israel’s Ministry of Finance, and the entire insurance industry.
In addition, Ron-AI offers a wide variety of actuarial services, consulting, managerial services and business intelligence (BI) designed to improve the competitiveness of insurance and financial services companies. Ron-AI, appointed by the regulator in Israel to the task of managing the MBII Database, employs a team of professionals and adheres to strict international industry standards and conventions.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 60,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world The Power to Know®.