1. Autonomous Vehicles Israeli Perspective
Peggy Sharon, ADV
Levitan, Sharon & CO
AIDA World Congress, Rio de Janeiro, October 2018

2. Autonomous Vehicles Levels

3. Autonomous Vehicle Readiness
KPMG REPORT : Autonomous Vehicle Readiness Index (Jan 2018)
top ranking countries:
The Netherlands
Singapore US
Sweden UK

4. Recent Features With AV Technology
South Australia begins trials of FLEX autonomous shuttle bus (June 2018).
Low-speed shuttle services - pilot programs in Texas (Drive.ai – Aug 2018), Florida and California (Voyage – June 2018).

5. Ford’s fully autonomous vehicle (level 4) expected by 2021
Future concepts
Honda, Toyota and Hyundai – self driving on the highway (level 3) by 2020
Ford’s fully autonomous vehicle (level 4) expected by 2021
Volvo aims to replace short haul flights with 360c that drives while you sleep

6. AV Difficulties Volvo: Unable to detect kangaroos
‘Bad’, unpredictable driving and jaywalking

7. Israeli Perspective

9. Israeli Innovations
“car manufacturing is not about tires or brakes anymore, but the technology inside the car – the sensors and algorithms.”
Waze – car navigation system.
Mobileye - system for avoiding collisions and keeping vehicles in lane.
WayCare – predict and update traffic jams.
Argus – car cybersecurity system.
Karamba – car cybersecurity system.
Autotalks – communication between autonomous vehicles (V2X technology pioneer)
Otonomo – system for sharing car created data to 3rd parties

10. AV Testing and Development in Israel
BMW, Ford, General Motors, Honda, Uber, Volkswagen and Volvo have been investing in Israeli technology since 2016.
Israel’s Main challenges:
Driver obedience to rules and regulation
Road infrastructure
However, numerous AV testing projects expected to launch in the near future:

11. Ashdod – The Planned First Driverless City
GM, Mobileye working on Israel’s first driverless city.
Additional car manufacturers applied for permits to carry out trials.
Ashdod port – part of the Autonomous revolution

12. AV Testing and Development in Israel (cont.)
October Israel opens a segment of highway for autonomous cars near Shefayim. Novemebr 2017 –Mercedez-Benz opens R&D center in Tel Aviv for development of CASE strategy (connected, autonomous, shared & services, electric). Plans to open an AV test center in Netanya. June The Ministry of Transport and the Israel Innovation Authority announced the opening of tender for smart transportation trials.

13. AV Accidents and Results

14. Recent AV Accidents and Results
May Mobileye’s Self-Driving Car Runs Red Light in Jerusalem. No pedestrians or other vehicles were hurt.

15. AV Accidents and Results (cont.)
May 2018 – Google’s Waymo self-driving vehicle involved in Arizona crash.
September A self-driving car owned by Apple was involved in an accident.

16. Liability

17. Suitable Liability Regime?
Future vision – less accidents but the accidents will be More expensive and deadly then now.
Different kinds of accidents.

18. Product Liability
Negligence and Probability Tests or utility-cost test.
Strict product liability.
Types of defects: Manufacturing or Production Flaw, Design Defect, Defective Warnings or Instructions.
Interaction between man and computer (software) until full automation.

19. Who will be considered as a “driver” in a “smart car”?
The manufacturer?
The person who planned the automatic system?
The person who entered
the car?

20. Insurance And Regulation In Israel
Distinction between bodily injury and property damage:
bodily injury – no fault system no change required.
property damage – based on driver’s negligence new rules required.
No regulatory progress yet in the field of autonomous vehicles.

21. Expected Changes in Insurance and Regulation

22. Insurance Industry in General - Prediction
The size of the automobile insurance pie will likely shrink - estimation of 40% dropping until 2040.
commercial lines could take a larger share, as the marketplace moves towards car sharing and mobility on demand.
The potential liability of the software developer and manufacturer will increase too.
Increase of liability insurance for maintenance of vehicles by vehicles owner and manufacture.

23. Impact on Insurance Industry

24. Changes in the Insurance Industry
Changes in procedure for handling claims (documents types and evidence).
Underwriting stage will change according to the development of technology (lack of history).
Regulatory control over the level of premiums – Difficulties in determining the premium.

25. Cybersecurity Insurance
growing concern for cyber attacks on autonomous vehicles. The risks:
Taking control over the vehicle.
Collect data about your personal life.
Terror attack
Is it manufacturer/consumer or state responsibility ?
In December 2013 Target was attacked by hackers who stole 110M consumer credit data.
Cybersecurity insurance is designed to mitigate losses from a variety of cyber incidents.

26. Immediate Changes
Israeli Gov’t is giving approx. 33% discount on license fee to drivers who install Mobileye safety system.
Britain’s Motor Insurance Company is giving 5% discount for customers who activate autopilot system in their Tesla.

27. What Questions Should Be Asked By The Insurance Market
What is autonomous vehicles? (disadvantages, shelf life of parts, etc).
requirements regarding maintenance?
Which new insurance product will reduce the driver's "moral hazard“?

28. AIDA XVth World Congress October 2018
Thank you!
AIDA XVth World Congress October 2018