Self Driving Car in the Insurance market

Madrid, 16 de junio de 2016

Auditorio Reale Seguros

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THE SELF DRIVING CAR

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WHAT IS A SELF DRIVING CAR?

• The scale most common is from

NHTSA, National Highway Traffic

Safety Administration.

• This scale is built up using a five

grade scale (0-4) where the levels

of autonomy are classified.

• Level 4 refers to full automation and

the vehicle is designed to perform

all safety-critical driving functions

and monitor roadway conditions for

the entire trip.

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NHTSA SCALE (NATIONAL HIGHWAY TRAFFIC SAFETY

ADMINISTRATION)

• Level 0

– No-Automation: The driver is in complete and sole control of the vehicle at all times. The

driver has full control over the primary vehicle controls (brakes, steering, acceleration/drive)

and is himself responsible for driving the vehicle safely

• Level 1

– Function-specific Automation: One or more specific control functions are automated

independently, for example electronic stability control or dynamic brake support in

emergencies. The driver is fully engaged and responsible for overall vehicle control.

• Level 2

– Combined Function Automation: At least two controls are automated and work in unison,

such as adaptive cruise control in combination with lane keeping. The driver disengages

from active control in certain limited driving situations, and is still responsible for monitoring

the roadway and safe operation.

• Level 3

– Limited Self-Driving Automation: The driver cedes full control of all safety-critical functions

under certain traffic or environmental conditions, relying heavily on the vehicle to sense

changes in those conditions that require the driver to take back control within a comfortable

transition time.

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NHTSA SCALE (NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION)

• Level 4

– Full Self-Driving Automation: The vehicle is designed to perform all safety-critical

driving functions and monitor roadway conditions for an entire trip. The driver is

not expected to operate at any time or else the vehicle can be unoccupied.

– This also includes vehicles without passengers or drivers. Driving safety rests

entirely upon the vehicle's automated system.

• https://www.youtube.com/watch?v=Ol3g7i64RAI

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WHAT IS A SELF DRIVING CAR?

• The self-driving cars is supposed to

take thousands of decisions completely

by itself in order to perform safe driving

with very limited, or with no human

interactive at all

• The cars must also be equipped with

software and hardware in order to be

able to “see” the environment around

and to send and receive data:

– between cars (Vehicle to Vehicle

communication)

– and to send/receive information

to/from infrastructure such as

antennas (Infrastructure to

infrastructure and Vehicle to

Infrastructure).

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WHAT IS A SELF DRIVING CAR? - HARDWARE

• Sensors: There are sensors at a 360 degree around the

car. This will help the car to determine if there are any

objects in its nearly environment. Nearly environment is

approximately 5 meters around the car.

• Cameras: There is a camera in front of the cars that will

operate together with the radar. The front camera is used

for detect other cars, objects and even to read traffic signs

such as speed signs or read or green lights.

• Radar: The radar is used to detect objects on the road that

the car has to avoid or break for.

• GPS: The GPS is not accurate enough to be able to

localize the position of the car. The GPS system is seen as

a complement to other technologies due to it will only be

able to give a rough position with an accuracy of +- 20

meters. According to that the GPS system is a bit weather

sensitive and will not work in heavy storms or rains. There

are also places in the traffic system that has no GPS

signal at all, such as tunnels.

To be able to perform the cars without or with very limited human interaction the cars has to be equipped with

hardware for autonomous purposes.

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WHAT IS A SELF DRIVING CAR? – HARDWARE 2

• LIDAR (Light Detection And Ranging): An alternative technology, to create a virtual reality around the car

• LIDAR is the remote sensor technology that measures distance by illuminating a target with a laser and analyzing the

reflected light .

• This technology is used by Google Self-driving cars but is not used by self-driving cars from most car manufacturers

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WHAT IS A SELF DRIVING CAR? - SOFTWARE

• Pre-defined 3D map:

– The 3D map is seen as absolutely necessary to perform autonomous driving. The 3D map is a virtual

reality of a model that is to 100 % accurate with the real reality. In the 3D map every single traffic sign,

road line, fundament and so on is represented. The computers in the car use its cameras, radars and

sensors to compare the real reality with the virtual reality in the 3D map.

• Traffic Center

– All vehicles must be connected in somehow through a traffic center in order to give information to the

cars what's going on outside the range of the sensors

• Sensor data preprocessing:

– Fusion raw data for the sensors to provide information on vehicle position and motion, obstacle and

environment map.

• Localization:

– It establishes the correspondence between the car’s present location, and the pre-defined 3D-map.

• Obstacle tracking:

– Track of static and moving objects.

• Control:

– The final software component realizes control of the vehicle itself, its throttle, brake, gear shifter, and

steering wheel.

To be able to perform the cars without or with very limited human interaction the cars has to be

equipped with software for autonomous purposes.

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AMBITIONS OF STAKEHOLDER

Car manufacturer: As the main group of the car market they have the strongly ambition to

stay in this market – at least not to lose market share to others or in best case to profit from

this market rising.

Tech companies: Technology oriented companies like Google and Apple are new into this

market – and it is a great opportunity for them to get new market shares and rise up their

profits. It is not that impossible, also because the new autonomous cars use new

technologies

OEMs (originally equipment manufacturer): Suppliers are the backbone of the car industry –

and if they will do it right and set up new strategic alliances, they will also have the chance

to keep their market places. And new suppliers will entry this market for sure

Government: With the new kind of cars they assume that accidents will not almost happen

anymore, decreasing health costs are on the consequences.

Drivers as users: Self-driving cars with its supporting technology assistance will give more

safety on the road. And if there will be fully autonomous cars, the user will also have the

opportunity to do something else while the car drives automatically

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CREATING MORE FREE TIME

• Despite the increasing

sophistication of modern

vehicles, and greater

application of driver assistance

technologies, the driver must

still concentrate on driving

100% of the time. Highly and

fully automated vehicles will

change this

IMPROVING SAFETY

POTENTIAL BENEFITS

• Human error is a factor in over

90% of collisions.

• Highly and fully automated

vehicles are a natural

progression from today’s

automated safety

technologies. They will be

required to obey all road traffic

laws and The Highway Code

and are expected to

substantially reduce collisions,

deaths and injuries.

REDUCING EMISSIONS AND

EASING CONGESTION

• Better use of road space,

reducing congestion and

providing more consistent

journey times, through the use

of "connected vehicle"

technologies.

• Vehicles could also

communicate with roadside

infrastructure such as traffic

lights and use this information

to minimize fuel consumption

and emissions.

• There are still many people who do not have a driving licence, or access to a vehicle. Disabled people

may be unable to drive. Elderly people may be judged unfit to drive. Others may simply not want to drive

or be concerned about their ability to do so.

INCREASING ACCESS TO VEHICLES FOR EVERYONE

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ONGOING PROJECTS

• Drive Me a Volvo Project.

• The Project drive me is running by Volvo in a cooperation with the Swedish Transport

Agency and the city of Gothenbourg

• According to Volvo and it´s safety approach they must create a car which in all

conditions and in all situations is able to make own decisions without human

interactive, in other words a level 4 car.

• If the pilot phase of the project succeed well the autonomous package will be sold as

an optional package on certain Volvo models from the year of 2020. “Autonomous

package"

• .http://www.volvocars.com/es/acerca-de-volvo/innovaciones/coches-

inteligentes/coche-autónomo

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GOOGLE

• Google have put all technological systems together in a fully functional vehicle, their

first complete prototype for fully autonomous driving. These vehicles have been

designed from the ground to be able to drive without any human interactive.

• The ambition and goal is that the sensors and the hardware do all the work and it

should be possible to only press a button and the car will take you where you need to

go. Furthermore the ambition is to develop the cars without a steering wheel, brake

pedal or accelerator pedal.

• However it is not compliant to the law to have a car without these vital parts why

Google is currently working on a solution to have a removable steering wheel and

pedals.

• The system provides an override that allows a human driver to take control of the car

by stepping on the brake or turning the wheel, similar to cruise control systems already

found in many cars today

• Google says they want to release its fully functional self-driving cars into American

streets in 2020. These cars will come with a removable steering wheel, accelerator

pedal, and brake pedal

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This picture shows the prototype of Google – it has no

steering wheel:

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APPLE TITAN PROJECT – IMOVE¡¡

• Apple has recently started a project named Titan which

aims to build a car called iMove. Recently apple

employed a lot of personnel from Tesla Motors. The

project has today nearly 1.000 employees

• The iMove car will be electric and will feature the same general design lines like all the latest

Macintosh products. Most of the car body is covered with transparent materials, so that even under the

roof the driver get a cabriolet feeling. This transparent material is also a solar panel.

• the iMove car it will be launched to the market in 2020. But keep in mind that the Titan

project started for a bit more than a year ago and Apple has not been into car manufacturing

before

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IMPACT IN INSURANCE MARKET

• Until 2020:

– Most of the key players in the ordinary car industry will provide level 3 cars

improving existing driver assistance systems (the exemption is Volvo)

– Technological companies as Google and Apple seem to directly build a self driving

car on level 4 and not to develop it by improving existing driver assistance

systems

• At 2040 the autonomous cars will become our primary means of transport

• Studies suggest that self-driving cars would dramatically reduce car ownership.

• If autonomous cars can bring down accident rates substantially, standard motor

premiums will fall.

• If the driver-owner model of car ownership is replaced by pooled, shared or leased

driving, insurers may look to provide risk coverage to the ownership collective; or look

to continue insuring the driver on a pay-as-you-go basis

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IMPACT IN INSURANCE MARKET

• In households where there isn’t much overlap, a self-driving vehicle could bring one

spouse to work early in the morning, then return home on its own to pick up the other

in order to make a separate run to a different workplace, drop off kids at school, help

run errands, before retrieving that original drop-off at the end of the work day.

• Self-driving cars could create 1GB of data a second

– Self-driving cars will come with a myriad of sensors creating machine-to-machine

data at the rate of 1GB a second. Big data strategists believe the sensors in self-

driving cars will also provide great opportunities to spot mechanical problems

before they happen and even schedule repairs. If a self-driving cars does produce

1GB per second, it would, on average will create about 2 petabytes of data a year.

So autonomous car technology will increase exponentially the amount of data

being produced compared to what cars today create.

• Increasing contacts with clients

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IMPACT IN INSURANCE MARKET

The future of the auto industry can be found in this

quadrant (4).

Self Driving Car in the Insurance market

Madrid, 16 de junio de 2016

Auditorio Reale Seguros

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