Multi-billion dollar motor insurance industry faces radical restructuring due to autonomous cars
The multi-billion pound motor insurance industry faces a period of radical restructuring as a result of the advent of autonomously driving cars, with the number of crashes set to drop by 80 per cent by 2035* and insurance premiums set to plummet, a high level panel discussion organized by Volvo Cars and Thatcham Research will hear today.
Research by Swiss Re and HERE** released earlier this month calculated that AD technologies could wipe USD20bn off insurance premiums globally by 2020 alone. At present, motor insurance generates 42 per cent of all non life gross premiums, the largest single slice of global premiums.**
Volvo Cars believes that the insurance industry will have no choice but to react to these seismic challenges to its existing business model.
“The medium to long term impact on the insurance industry is likely to be significant. But let’s not forget the real reason for this – fewer accidents, fewer injuries, fewer fatalities. Autonomous drive technology is the single most important advance in automotive safety to be seen in recent years,” Hakan Samuelsson, president and chief executive will tell a seminar to be held later today in London entitled ‘A Future with Autonomous Driving Cars – Implications for the Insurance Industry'.
Peter Shaw, chief executive at Thatcham Research, said: “Vehicle manufacturers are predicting that highly autonomous vehicles, capable of allowing the driver to drop ‘out of the loop’ for certain sections of their journey, will be available from around 2021. Without doubt, crash frequency will also dramatically reduce. We’ve already seen this with the adoption of Autonomous Emergency Braking (AEB) on many new cars. Research in the US by NHTSA predicts that by 2035, as a result of autonomous and connected cars, crashes will be reduced by 80 per cent. Additionally, if a crash unfortunately can’t be avoided, then the impact speed will also drop as a result of the system’s performance - reducing the severity of the crash.”
Volvo Cars is fully committed to maximizing the safety benefits of AD cars. It announced last week that it will start the UK’s most extensive AD trial entitled Drive Me UK in 2017, with up to 100 AD cars being driven on real roads by real people, part of its global plush to develop AD cars with similar programs to be run in Sweden and China.
“The automotive industry cannot do this on its own,” Håkan Samuelsson, Volvo’s chief executive, will tell the gathered audience. “We need the government’s help. It is essential that car makers work with the government to put in place laws and regulations that allow us to get these cars on the road as soon as possible and start saving lives.”
Sajid Javid, UK Secretary of State for Business, Innovation and Skills said: “Driverless cars will see our journeys become faster, cleaner and safer. The UK is leading the way in developing the technology needed to make this a reality thanks to our world-class research base and these types of trials will become increasingly common.
“Such advances in technology prove the fourth industrial revolution is just around the corner and our determination to be at the forefront is why we are attracting top names from across the globe for real-world testing.”
Mr Samuelsson will say that he looks forward to working with the UK government to ensure that this technology can be introduced as soon as possible.
“The advent of autonomous driving represents a revolution for automotive safety,” Mr Samuelsson will say. “Volvo has a vision that no one will be killed or seriously injured in a new Volvo by 2020. Autonomous drive technology is a key tool in helping us achieve this aim.”
Volvo XC90 Crowned Best SUV at Fleet World Honors
- Tax-efficient XC90 voted best SUV by panel of fleet judges
- Seven-seat XC90 praised for its Scandinavian design, world-first safety systems and advanced connectivity
- Diesel and plug-in hybrid powertrains, with CO2 emissions from just 49g/km
The Volvo XC90 has been crowned Best SUV at the Fleet World Honors 2016. The prestigious award ceremony was held at the famous Royal Automobile Club in London on Tuesday 19th April 2016.
The XC90 was praised by the judges for its elegant design, luxurious and practical interior, and advanced safety and connectivity equipment.
Commenting on the XC90, the Fleet World judges said: "Spearheading Volvo's new-generation products, the XC90 is a distinctly Scandinavian take on luxury motoring. Elegantly designed and effortlessly comfortable, it offers competitive diesel and plug-in hybrid options for fleets and features the best interior in its class. With world-first safety systems, advanced connectivity on board and near-infinite practicality, it's a deserved winner."
The XC90 uses Volvo's all-new SPA platform and a range of powerful yet efficient Drive-E powertrains. These include the recently upgraded D5 diesel engine with its ground-breaking PowerPulse technology and the plug-in hybrid petrol-electric T8 Twin Engine.
PowerPulse is an innovative technology that uses compressed air to boost the engine's responsiveness by virtually eliminating turbo lag. This helps give the performance of a much larger engine, especially at low revs. Add CO2 emissions of just 149g/km and competitively low P11D prices, and the XC90 D5 PowerPulse is a compelling choice for fleet customers.
The T8 Twin Engine combines a petrol engine with an electric motor to offer the running costs of a far smaller, less powerful car. It is capable of doing up to 27 miles in electric-only mode, offering near-silent, zero-emission travel. Its class-leading CO2 emissions of 49g/km are seriously impressive, but factor in its 100% first year write-down allowance and corporation tax relief of up to £12,720 (based on a T8 Twin Engine Inscription) and the XC90 T8 is exceptionally tax-efficient for a seven-seat SUV.
Being a Volvo, the XC90 also leads the field when it comes to safety. Among the world-first technology fitted as standard is automatic emergency braking at a junction, which applies the brakes should you turn into the course of an oncoming vehicle. Another ground-breaking safety aid is Run-off Road Protection, which includes an innovative energy-absorbing section in the front seats to help prevent spinal injuries if your car leaves the road.
Selwyn Cooper, Head of Business Sales of Volvo Car UK, said: "It's a fantastic result for the XC90 to be voted Best SUV by such an influential title as Fleet World. The XC90's winning combination of tax-efficiency, luxury, practicality, high-tech equipment and of course safety make it the ideal choice for all business users."
Volvo Cars Announces New Target of 1 Million Electrified Cars Sold by 2025
Volvo Cars, the premium car maker, has announced that it aims to sell a total of up to one million electrified cars by 2025.
The Swedish company plans to achieve this aim by offering at least two hybrid versions of every model in its range and releasing the first all-electric car in 2019.
“It is a deliberately ambitious target,” said Håkan Samuelsson, president and chief executive. “It is going to be a challenge, but Volvo wants to be at the forefront of this shift to electrification.”
Volvo Cars has been readying itself for the emergence of electrified vehicles for the last five years. It has developed two all new vehicle architectures for larger and smaller cars – Scalable Product Architecture (SPA) and Compact Modular Architecture (CMA) – that can incorporate either hybrid or fully electric car technology.
Its larger 90 series and 60 series cars are to be built on SPA, and it will soon launch a global range of smaller 40 series cars on CMA. All of these cars will have electrified versions. The 1m electrified car target is a cumulative total.
The new electrified car pledge forms part of a wide ranging review of Volvo’s strategic sustainability program announced today that contains several new commitments that place sustainability at the center of its future business operations.
The new commitment has been christened ‘omtanke’, which is a Swedish word that means ‘consideration’ or ‘caring’.
Among the commitments being made by Volvo Cars are that it will impose climate neutral operations by 2025, have 35 per cent of its leading positions held by women by 2020, move further towards its vision that by 2020 no one will be killed or seriously injured in a new Volvo and work with international partners to promote sustainability.
“Sustainability is nothing new or something that sits outside our operations, it is something that forms an integral part of everything we do. It is simply our way of operating,” said Mr Samuelsson. “This new sustainability commitment reflects Volvo Cars’ fundamental belief that we must also grow responsibly.”