An Actuarial Model of Autonomous Vehicles

The technology of autonomous vehicles is growing fast in current time. On one hand, the popularization of autonomous vehicles is expected to greatly reduce the occurrence of traffic accidents, meanwhile lowers the income of premium for insurance companies; on the other hand, the decrease of traffic accidents also reduces the amount of claim for these companies. Based on the actuarial model of manual vehicles and the data of current autonomous vehicles, this paper proposes an actuarial model for autonomous vehicles, and then computes the corresponding premium. Through comparison between the premiums of autonomous vehicles and manual vehicles, we find that autonomous vehicles reduce not only the financial burden on their owners, but also the burden and cost of health on the entire society.