Initial Project Description:
The next transformation in transportation is fully in progress: Autonomous vehicles are manufactured and tested by almost all well-known, and an increasing number of new automakers. The shift from horses to cars came along with large safety, environmental and economic challenges and took a period of about 50 years. We are all well aware that the change we are facing today will be significantly faster. A transformation of that scale does not work without innovation and significant change and even requires to disrupt the norm as we know it. >> Read More
Beginning with a problem statement focused on consumers and their adoption of autonomous vehicles, the project team evolved the problem statement to:
"The insurance industry is not prepared to seamlessly integrate with the future of transportation"
Duration of Project:
- 4 weeks
- The Co-operators
- Munich Re
We would like to extent our gratitude to these external organizations for this project:
- General Motors
- Insurance Bureau of Canada
- University of Toronto
- Explainable Robots
During this four-week sprint, the team followed design-thinking methodologies to identify their problem statements and develop the final solution. Through defining the considerations, iterating through mock-ups, developing a risk model, and creating a pricing model, the team arrived at their final MVPs. Below are the highlights of each stage:
This began with developing the considerations surrounding the following questions:
- Which customer needs can insurance companies address today?
- What do insurance companies need to prepare today for the future of transportation?
- Which customer needs will insurance companies need to address in a fully autonomous world?
The following were the top insights derived from the questions above:
- Customers worry about the safety of autonomous vehicles
- Insurance companies do not have a strategy to assess the risk of autonomous vehicles and to replace the decrease in personal auto liability premiums
- Customers will slowly move away from auto ownership
Interating Through Mock-Ups
To address the current customer concerns, the team created several mock ups and iterated on them based on close to 200 respondents. This was done through co-creating amongst several participating insurance companies, third parties and direct customer testing. Working with telematics factors available today, collaboration with academia and the progression of autonomous systems, the project team explored several industry focused MVPs including a new short term leasing model.
Developing A Risk Model
Tested with a variety of factors and scenarios, this autonomous vehicle specific risk model can be used by insurers to more effectively price during this transition period when human driven vehicles are still on the road. This was co-created amongst the consortium of insurers, manufacturer (GM) and academia.
Creating a Pricing Model
One of the project team's last steps was to create a pricing model, which is outlined below:
(Pricing model details are only available to Cookhouse Lab members, pleaes inquire about membership details if interested)
FINAL OUTPUTS (PORTFOLIO SOLUTION):
The final output of the project was a portfolio solution that included 3 different products:
Discovery and Awareness Portal
This portal was created to address the safety concerns of customers by providing a manufacturer agnostic resource where customers can learn and experience what it's like to be in an autonomous vehicle.
Adaptive Risk Model
This risk model takes into account the transition period or "messy middle" environment where customers have behicles that have some autonomous features but are not fully autonomous.
Transportation Short Leasing/UBI Application
This is for consumers who don't yet own a vehicle today but require transportation. As autonomous vehicles are projected to be more appealing than taxis, this is intended to be more financial appealing than taxis in addition to acting as a broker for autonomous transportation.