Jessica Macy Lam / en 老司机直播 students investigate a little-talked about aspect of self-driving cars: Insurance /news/u-t-students-investigate-little-talked-about-aspect-self-driving-cars-insurance <span class="field field--name-title field--type-string field--label-hidden">老司机直播 students investigate a little-talked about aspect of self-driving cars: Insurance </span> <div class="field field--name-field-featured-picture field--type-image field--label-hidden field__item"> <img loading="eager" srcset="/sites/default/files/styles/news_banner_370/public/StatisticsStudentsSelf-DrivingCarsInsurance.jpg?h=afdc3185&amp;itok=TBW3Yz-m 370w, /sites/default/files/styles/news_banner_740/public/StatisticsStudentsSelf-DrivingCarsInsurance.jpg?h=afdc3185&amp;itok=NzzArK0M 740w, /sites/default/files/styles/news_banner_1110/public/StatisticsStudentsSelf-DrivingCarsInsurance.jpg?h=afdc3185&amp;itok=Bv-Yy-BH 1110w" sizes="(min-width:1200px) 1110px, (max-width: 1199px) 80vw, (max-width: 767px) 90vw, (max-width: 575px) 95vw" width="740" height="494" src="/sites/default/files/styles/news_banner_370/public/StatisticsStudentsSelf-DrivingCarsInsurance.jpg?h=afdc3185&amp;itok=TBW3Yz-m" alt="Left to Right: Kangdi Yang, Yaru Yang, Qiwen Zhao, Yuxuan Zhang"> </div> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span>Christopher.Sorensen</span></span> <span class="field field--name-created field--type-created field--label-hidden"><time datetime="2019-06-26T14:09:06-04:00" title="Wednesday, June 26, 2019 - 14:09" class="datetime">Wed, 06/26/2019 - 14:09</time> </span> <div class="clearfix text-formatted field field--name-field-cutline-long field--type-text-long field--label-above"> <div class="field__label">Cutline</div> <div class="field__item">From left to right: Kangdi Yang, Yaru Yang, Qiwen Zhao and Yuxuan Zhang of 老司机直播's department of statistical sciences (photo by Jessica Macy Lam)</div> </div> <div class="field field--name-field-author-reporters field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/authors-reporters/jessica-macy-lam" hreflang="en">Jessica Macy Lam</a></div> </div> <div class="field field--name-field-topic field--type-entity-reference field--label-above"> <div class="field__label">Topic</div> <div class="field__item"><a href="/news/topics/our-community" hreflang="en">Our Community</a></div> </div> <div class="field field--name-field-story-tags field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/news/tags/faculty-arts-science" hreflang="en">Faculty of Arts &amp; Science</a></div> <div class="field__item"><a href="/news/tags/self-driving-cars" hreflang="en">Self-Driving Cars</a></div> <div class="field__item"><a href="/news/tags/statistical-sciences" hreflang="en">Statistical Sciences</a></div> <div class="field__item"><a href="/news/tags/undergraduate-students" hreflang="en">Undergraduate Students</a></div> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>It鈥檚 probably not the first question that comes to mind when the topic turns to self-driving cars, but it鈥檚 nevertheless a critical one: How will autonomous vehicles be insured?</p> <p><strong>Kangdi Yang</strong>, <strong>Yaru Yang</strong>, <strong>Yuxuan Zhang</strong>, and <strong>Qiwen Zhao,&nbsp;</strong>in the University of Toronto鈥檚 department of statistical sciences, recently turned their minds to the problem during a <a href="https://www.soa.org/research/opportunities/2019-student-case-study/">student research competition hosted by the Society of Actuaries</a>.</p> <p>The team, who were all undergraduate students at the time the competition took place, wrote a research report on how autonomous cars will likely change the insurance industry 鈥 and insurance policies for car owners.</p> <p>Their main finding: Car owners likely won鈥檛 ever need to worry about being blamed for accidents again since self-driving cars take human error on behalf of the driver out of the equation.&nbsp;</p> <p>鈥淸Car crashes] are something the manufacturing company would be responsible for but not the driver 鈥 that is the kind of transformation we need to take into account and abandon some of the old risk factors,鈥 Zhao says.</p> <p>That鈥檚 because crashes involving vehicles we use today are largely caused by people. A crash involving self-driving cars, by contrast, would most likely be caused by system failure, technology failure or network failure, according to the 老司机直播 team鈥檚 research.</p> <p>The 老司机直播 team鈥檚 report, which made it to the competition鈥檚 semi-finals, was based on data about a fictional city鈥檚 number of insurance claims for traditional vehicles and claim amounts. They spent a month conducting intense data cleaning, analysing and programming 鈥 not to mention brushing up on market research, as well as the various factors affecting insurance premiums.</p> <p>So how might the insurance industry change once self-driving cars officially hit the market?</p> <p>Some of the variables that will need to be considered, according to the team, are the size of the car, which could determine the seriousness of injuries, and how much technology is under the hood, which will determine the cost of replacing the vehicle. &nbsp;</p> <p>One possibility is that consumers may not need to pay if they are in a collision in a fully autonomous vehicle. Zhao adds that any collisions that happen because of manufacturing errors mean&nbsp;the manufacturer would likely record the losses instead of the insurance company.</p> <p>The team also found that the price of insurance premiums will probably decrease because fewer accidents are expected as more fully autonomous vehicles on the road.</p> <p>Yang points out that changes to today鈥檚 car insurance industry and policies could be a reality in the not-so-distant future.</p> <p>鈥淸Insurance industries] need to consider now that this technology is already on the market,鈥 says Yang. 鈥淐ompanies are going to compete for these market shares and the companies who have a solution in place&nbsp;will win.</p> <p>鈥淭hinking about it early is the most important thing.鈥</p> </div> <div class="field field--name-field-news-home-page-banner field--type-boolean field--label-above"> <div class="field__label">News home page banner</div> <div class="field__item">Off</div> </div> Wed, 26 Jun 2019 18:09:06 +0000 Christopher.Sorensen 157117 at