AI-Based Predictive Analytics for Autonomous Vehicle Insurance Risk Assessment

Abstract

The development of autonomous vehicles (AVs), the cutting-edge technological advancement, is gaining enthusiastic acceptance from the community at large. Autonomous vehicles will disrupt existing technologies to a significant extent. In the context of vehicle insurance, the increasing number of road mishaps and traffic density necessitates autonomous vehicle insurance. One of the main needs before insuring autonomous vehicles is accurate risk assessment. Risk assessment in autonomous vehicle insurance will greatly benefit stakeholders, including insurance companies, by identifying which policies to underwrite and which to decline. The trustworthiness of decision-making is based on the same factors. Risks and unwanted incidents occur during the underwriting of insurance. By analyzing scenes without human intervention, automotive companies use a predictive algorithm based on artificial intelligence to transport passengers efficiently from one location to another. The same principle can be applied to the underwriting of AV insurance, saving time and resources. The evolution of autonomous transportation systems is on the rise. With the adoption of autonomous vehicles, the concept and framework of vehicle insurance policies have undergone a significant shift. Information about the various business components necessitates an intelligent and accurate risk assessment system. Risks associated with advanced and autonomous vehicle technologies can be minimized through the precision of risk assessment decisions. To accomplish this, machine learning and artificial intelligence are implemented in this study using an algorithm for predictive analytics to categorize and assess the risk of autonomous vehicles. This essay focuses on the concept of returning autonomous vehicles equipped with AI predictive analytics as well as the subsequent process of assessing the risks associated with the driving of AVs alongside case studies. Given the demand for autonomous vehicle insurance, we concentrate on utilizing AI and machine learning algorithms in a practical setting to decrease costs and improve the precision of insurance risk assessments.