ADAS is driving smarter windshields, but roadblocks loom
As advanced driver assistance systems take off, there are questions to be answered about claims, calibration and costs.
Windshields have come a long way since their introduction in the early 1900s. As cars got faster, windshields became a necessity. Wiper blades and increasingly safer glass topped the innovation list until recently, but advanced driver assistance systems (ADAS) are poised to imbue our windshields with an entirely new level of smarts.
While many drivers are still coming to grips with the idea of ADAS, McKinsey research found that nearly 90% of people who bought a vehicle with ADAS wanted the system in the next vehicle they bought.
Safety regulations are also driving greater adoption of ADAS by car manufacturers. Little wonder that analysts are so optimistic about its growth over the next few years.
Smarter windshields raise questions
The windshield is the perfect fit for ADAS because properly calibrated glass can assist drivers with parking, detect pedestrians and emergency brake automatically where necessary, or detect lanes and keep drivers within them. There are also blind spot alerts, adaptive cruise control, and the list goes on. As computer vision moves into auto claims, it has tremendous potential to increase safety and capture data that can be used to investigate and process claims, but there are still questions to be answered.
By 2020, smart windshields are widely expected to be the norm, not just the exclusive preserve of luxury brands. Manufacturers see a way to add value, drivers appreciate the convenience, but there is also a strong possibility that legislators will push things like automatic braking systems to avoid collisions and make everyone safer, just as they did with seatbelts and airbags.
With ADAS set to become a standard, insurers need to find answers to a few tricky questions sooner rather than later.
What impact will calibration have on windshield repair?
If a regular windshield breaks, it is an easy job to replace it, but smart windshields must be properly calibrated to ensure that all the ADAS elements are working correctly. This process requires a special scanner, some expertise and, just like many other repairs, it is not a universal standard, so different scanners and knowledge will be required for various models and makes of cars.
Repair shops may not be equipped to perform the calibration. Buying scanners and training staff involves a large investment, so outsourcing is likely.
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How will this affect customers?
No one wants to have to wait longer to get their car back after an accident, but if repair shops have to outsource, then repairs are going to take time and likely be more expensive. Even if they schedule efficiently and book in services with manufacturers, the process is going to take more time than a regular windshield repair, which can be done in your driveway or parking lot in a matter of minutes.
The extra expense is also inevitable and there could be a disconnect between the estimates that shops provide and the charges that different manufacturers levy, particularly if unforeseen complications materialize during the repair process.
What about insurers, premiums and the bottom line?
There is no doubt that the increased complexity here will significantly increase the cost of a windshield repair. No one, not the insured, the repair shop, the manufacturer or the carrier is going to want to pay that cost. If the process of securing a proper repair and recalibration grows too complicated, expensive and time-consuming, it may make more sense just to replace them.
Where does liability apply?
Consider that any error made in the calibration process could result in the failure of features that the driver relies upon. If a sensor has been calibrated incorrectly and it leads to an accident, who would be liable? Is the repair shop at fault? Does the manufacturer bear responsibility? Or would there be legal implications for the driver or the carrier?
Technology is transforming auto insurance right now and so carriers need to be cognizant of these issues and respond quickly. There is no doubt that ADAS will bring many benefits to the auto industry and insurers, but until these questions are answered there are risks that carriers should be wary of and anticipate. We need to work out the answers now, before a life-threatening issue develops.
Fred Lizza is CEO of StrategicClaim, a provider of a SaaS-based claims platform for carriers, agents and policyholders designed to expedite reporting and resolution of auto and homeowner’s insurance losses. He was previously CEO of Freestyle Solutions, an e-commerce and SAAS order management leader. Contact him at FLizza@stclaim.com.
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