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17 June 2015 | Corporate
Recently the University of Michigan's
Mobility Transformation Center (MTC) hosted a research review where
affiliates, including Munich Re, learned about the research
projects underway and those planned for 2015 and beyond. For Munich
Re, the review was also an opportunity to connect with the
researchers and explore ways to work
together.
Risks accompanies opportunity
“Auto technologies in development,
including autonomous and connected cars, are expected to have
profound impacts on society and our
business,” explains
Michael Scrudato, Senior Vice President, New Strategic
Markets.“As a leader in our industry we are
actively engaged with the leading AV programs across the US to
understand, and manage, the opportunities and potential risks that
accompany these new technologies.”
Autonomous vehicles, for example, are expected to greatly reduce
accidents attributed to human error and, in turn, reduce the social
and economic costs to individuals, society and the state. Fewer
accidents has the potential to positively impact traditional auto
insurance premiums and types. But, will it be replaced with new
products for manufacturers of AVs or cyber coverages for
manufacturers of AV systems?
Knowledge partners are key
These are some of the questions being explored by the University
of Michigan’s Mobility Transformation
Center (MTC). Munich Re and other founding members have agreed to
support the MTC’s efforts to
“develop the foundations of a commercially
viable ecosystem of connected and automated vehicles for moving
people and goods” with the goal of
dramatically improving safety, sustainability, and
accessibility.
“Partnering with external organizations
like the University of Michigan gives us access to data and
research findings we can use to develop products and solutions to
enable these technologies,” explained
Scrudato. “It also helps us make
connections to other affiliates who may be potential business
partners.”
The MTC Cyber Security test center is a particular area of
interest to Munich Re.
Security threat is imminent
Security is a very real threat, acknowledged research scientist
André Weimerskirch, a lead MTC researcher
in cyber security for automated vehicles. Hacking a car remotely,
however, is much more difficult, expensive and time-consuming than
many people realize. He pointed to demonstrations like the one that
appeared on the television show "60 Minutes" in which a hacker
gained complete control over a vehicle leaving the reporter
powerless to stop it, took several months and hundreds of thousands
of dollars to accomplish. Once hackers find ways to profit from
hacking cars, he cautioned, real-world hacking incidents will
likely skyrocket. One way his team intends to prepare: detecting
anomalies that occur in a vehicle’s systems
or the information packets it receives from outside sources to
which it is connected.
Liability may hinder progress
Liability is another critical area that MTC researchers will
focus on over the next year. The liability project team, led by
Raymond Bingham, PhD and Diana Bowman, LLB, PhD will develop
standards for determining fault and liability in automated vehicle
crashes based on legal precedents and instruments that have been
applied in Michigan and Illinois to cases involving currently
deployed AV technologies. Clear standards for establishing fault is
a critical aspect of AV acceptance. Knowing who is responsible
(driver, vehicle manufacturer, systems manufacturer) when an
accident occurs, is also key for the insurance industry who must
develop new products to cover exposures this emerging technology
presents.
In July the MTC will unveil Mcity, a 32-acre facility on the
University grounds designed to simulate the broad range of
complexities vehicles encounter in urban and suburban environments.
With Mcity, researchers and their partners, including Munich Re,
will have a new dimension in which to evaluate the capabilities of
connected and automated vehicles and systems.
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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.