"Insurers are not prepared to seamlessly integrate with the future of transportation."
This was one astounding conclusion that our project team came to at the end of our 4 week sprint. Through 16 days, 11 participants, 5 companies, and 4 partnerships, we inferred that the auto insurance industry needs to move quickly to adapt to the shifting change in risk.
And although the project team had originally determined 2050 as a placeholder date for the mass adoption of fully autonomous vehicles, through the course of the sprint, two problems became apparent:
- The anticipated date of 2050 is in fact, too far out
- Insurers are not ready for this disruption
Our Proposed Solution
To tackle both of these problems, the team created a portfolio solution with the following three elements:
- Discovery and Awareness Portal
- Adaptive Risk Model
- Transportation Short Leasing/UBI Application
The ultimate goal of these three elements is to provide a comprehensive solution for auto insurers while providing a user-friendly experience for the average driver.
1. Discovery & Awareness Portal
This portal will address the safety concerts of the customer by providing a manufacturer agnostic resource where customers can learn and experience what it's like to be in an autonomous vehicle.
2. Adaptive Risk Model
This risk model will take into account the transition period (or the "messy middle" environment) where customers will be driving vehicles that have some autonomous features, but are not yet fully autonomous.
3. Transportation Short Leasing/UBI Application
This application is aimed towards consumers who do not own a vehicle, but still require transportation. This is intended to be more financially appealing than taxis and this type of broker for autonomous transportation is projected to become more relevant over time.
Next steps for the Autonomous Vehicle Project Team
In addition to the above deliverables, the team produced a business case that outlined how the sustainable business model, which was presented at the team's final presentation. The final valuation of all of these products was a whopping $150 MM.
Immediately following the presentation was a next steps session where the audience and project team discussed how to bring the proposed MVPs to market. The following priorities were identified to be further defined in 2018:
- Getting buy-in from regulators for these new insurance models
- Creating partnerships with manufacturers
- Communicating the value of autonomous vehicles to consumers
- Creating insurance for pay-per-ride insurance
- Creating and refining the steps to aggregate information
- Designing an operational plan (how to make the $$)
- Bringing e-call (automated emergency calling) to Canada
- Collaborating with private and public sectors to improve safety in the transition period
- Creating data privacy guidelines
- Standardizing AV guidelines
- Creating a risk model
Want to get in on the action?
Although our initial project sprint has ended for the Autonomous Vehicle team, it's not too late to become involved with the next steps of this project! Make sure you're a part of our next phase by becoming a member of Cookhouse Lab in 2018! Our introductory membership prices are ending in Q1 of 2018, so the time is now.