Opinion: How direct-to-device connectivity is making high-tech vehicles safer and cheaper to insure

Last month, the UK car insurance industry revamped its insurance model after 25 years to factor in the technologically evolving automotive landscape.

The move aims to empower insurers to provide detailed risk assessments of new technologies - autonomous vehicles (AV), for example - making cars with high-tech safety features cheaper to insure.

This new ‘Vehicle Risk Rating System’ highlights how the industry is moving to make sure safety systems are aligned with the rapidly developing connected cars market.

But advanced innovations don't come without risk. Most automated systems rely on continuous connectivity via cellular networks, and lapses in coverage could threaten system failures and have consequences on the roads.

As insurers look to price motor insurance premiums more accurately, car manufacturers are exploring direct-to-device (D2D) technology and the subsequent enhanced data capabilities it could enable.

D2D is a new technology enabling any ‘device’ – in this case a vehicle – to connect directly to communications satellites and seamlessly switch between cellular and satellite networks cost effectively for the first time.

Always-on connectivity means increased visibility and reliability, so autonomous features are able to improve vehicle safety, rather than threaten it.

Automation is now acknowledged by insurers: but is the risk worth the reward?

The new risk rating system could quicken the race towards the first fully autonomous vehicle, particularly when the benefits can result in improved, cheaper premiums from drivers.

However, for these insurance policies to be as accurate as possible, insurers and auto makers must understand the essential role of connectivity in the operation of the connected vehicles.

Vehicle to Vehicle (V2V) and Vehicle to Everything (V2X) connectivity enables autonomous technology to operate effectively.

IT systems need to effectively communicate in real time to ensure drivers have access to telematics, emergency services and real-time road safety updates.

This access can improve medical response time in the event of an emergency, and real-time updates enable drivers to adjust their behaviours to improve overall road safety.

In well-connected areas without too much traffic, cellular networks can connect autonomous vehicles and technologies to broader systems ensuring their effective operation.

However, coverage gaps are common in remote areas or where weather may have damaged cellular infrastructure, threatening lapses in connectivity.

For vehicles dependent on autopilot and autonomous safety features, these drops in connectivity are detrimental to the vehicle operation, overall safety of the driver, their passengers and surrounding vehicles.

Uninterrupted driver safety services with D2D

By enabling cars to seamlessly switch between cellular and satellite networks, with satellite providers acting as a reliable back-up in areas with limited to no cellular coverage, D2D provides an always-on connectivity that prevents automated systems from failing.

This enhanced vehicle safety offered by D2D empowers car giants to provide a more granular understanding of a vehicle's risks and a driver's behaviour.

D2D also unlocks new possibilities for Original Equipment Manufacturers (OEMs) in the form of real-time data and insights on how the vehicle itself is operating. Such data can be used by insurers to optimise accuracy and enable personalisation of the insurance premiums they offer.

Furthermore, this constant, real-time collection of data enhances predictive maintenance, further bolstering the safety and efficiency of AVs on the road.

A connected future: encouraging the development of autonomous vehicles

Now that the benefits posed by AVs are recognised by automotive insurers, the opportunities D2D provides to the automotive industry will continue to grow.

This helps spur OEMs in their journey towards level five automation, however, the mass adoption of D2D-enabled technologies will require many moving parts and players to pull in the same direction.

There are many parties involved in the development of D2D and the ecosystem is wide-ranging, from chipset manufacturers developing D2D compliant chipsets, to OEMs integrating the required hardware into their vehicles.

Satellite providers such as Viasat play a founding role in the ecosystem, pulling in various partners to empower the cross-industry innovation required to ensure the development of AVs improve transport safety.

With over 400 million connected cars expected to hit the roads by 2025, and a projected further 33 million driverless cars by 2040, D2D will play a critical role in the growth of such vehicles.

Automakers that are agile enough to adopt Thatcham’s new insurance system alongside D2D will bring safety and innovation together to unlock the potential of the connected vehicle market.