By: Luke Jones, Published on February 20, 2018 10:04 AM, Last Update on February 20, 2018 07:06 AM
While technology is supposed to change driving and make cars safety, computers are currently indirectly increasing insurance claims costs. That’s the assessment of the CEO of Canada’s second largest insurance provider.
Aviva Canada says it has seen “double-digit” rises in property damage costs in auto insurance claims year-on-year, according to Greg Somerville, the CEO of the company.
“We have cars with a lot more technology coming into the market and obviously lots of people including Aviva believe in the benefits of [semi] autonomous vehicles,” Somerville added. For example, automatic emergency braking systems have not resulted in a decrease in collisions or claims.
Other automated technology includes lane departure warnings, forward collision alarms, and other driver assistive tech. Somerville says the technology is designed to stop accidents and injuries. Speaking to Canadian Underwriter, he added the tech is not always fulfilling its potential.
“Until we have a significant portion of the cars on the road with that capability, the cost to repair those vehicles hasn’t caught up with the benefits that we are going to derive from them as an industry and as a society.”
The main reason why this is happening because collisions still occur between assisted technology and vehicles that lack the tech.