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Fulfilling its Function: ADAS tech reducing claims frequency, according to LexisNexis report

Toronto, Ontario — A new study from LexisNexis is attempting to set the record straight on the relationship between ADAS technology and claims frequency and severity.

According to the report, “The impact of Advanced Driver Assistance Systems (ADAS) on insurance claims”, the presence of at least one ADAS feature resulted in an 8 percent decrease in collision claims frequency, while claims severity fell by 3 percent, based on data collected from 2014-2019.

LexisNexis found even greater reductions in the frequency of bodily injury (BI) and property damage (PD), of 27 percent and 19 percent, respectively.

“Our research suggests that change in claim severity is minimal and improvement in loss cost is attributed overwhelmingly more to reduced frequency,” reads the report, written by John Kanet, director of Auto Insurance for LexisNexis.

“The conventional wisdom has been that ADAS technologies should mitigate the number of insurance claims, but the impact of ADAS on claim severity has been less clear. ADAS features include expensive and complex technical components and are often installed on exposed areas of vehicles, making them susceptible to damage from a collision,” the report states.

LexisNexis marked 2014 as the beginning of the “ADAS Era” in their report, noting it as a turning point for the widespread adoption of collision avoidance technology. As of 2020, 40 percent of insured vehicles in the U.S. were from the years of the ADAS Era (2014-2019).

LexisNexis’ full report on ADAS and insurance claims can be found here.

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