HLDI

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Farm Bureau Actuaries Conference
Blaine, WA ? August 4, 2004
Kim L. Hazelbaker Senior Vice President
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Insurance Institute for Highway Safety (IIHS)

• Identify and develop countermeasures to reduce
  human and economic losses on our nations
  highways

Highway Loss Data Institute (HLDI)
Gather, process, and publish data on ways in
whichinsurance losses vary among different kinds
of vehicles
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IIHS and HLDI Value to Insurers

• Reduced losses
• Rating and underwriting
• Communications opportunities
• Legislative and regulatory uses

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Areas of Research

• Airbags
• Safety belt use laws
• Antilock brakes
• Antitheft devices
• Vehicle size

• Teenage drivers
• Bumpers
• Noncrash fire losses
• High performance models

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Companies that supply data to HLDI

• Allstate
• American Family
• Auto Club Group
• Cal. State Auto
• Chubb
• Erie
• Farmers
• GEICO
• GMACI

• Hartford
• Liberty Mutual
• Mass. AIB
• Nationwide
• Progressive
• Prudential
• Safeco
• State Farm
• USAA

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Size of HLDI databaseNumber of unique vehicles
in files, July 2004
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VINDICATORInformation Decoded from Vehicle
Identification Numbers

• VIN Positions 1 2 3 4 5 6 7 8 9 10 11 12-17

World ManufacturerIdentification
Vehicle AttributesCar LineSeriesBody
TypeEngineRestraints
Check Digit
Model Year
Plant Code
SequentialNumber
also antilock brakes, antitheft devices, daytime
running lights
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HLDI Insurance Claims Experience for Injuries,
Damage, and Theft by Make and Model

• StrengthsReflects the complete spectrum of
  real-world crashesGood predictor of future
  experience of unchanged vehiclesPossible
  confounding effects of driver age reduced
  Addresses both crash frequency and
  severityIdentifies size- and weight-related
  differencesLarge sample sizes
• LimitationsDominated by low and moderate speed
  crashesDominated by low severity injuriesNo
  detail on crashes information sources
  predominantly financialConfounding effects of
  driver characteristics beyond age

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Relative injury claim frequencies1999-2001 model
year passenger cars
Suzuki Esteem 4dr
Mitsubishi Mirage 4dr
Kia Rio 4dr
Mitsubishi Mirage 2dr
Kia Sephia 4dr
Volvo V70 4WD sw
Chevrolet Corvette conv
Porsche 911 coupe
Porsche 911 conv
Audi A6 Avant Quattro sw
19.2 claims per 1,000
insured vehicle years
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Passenger Car Collision Claim FrequencyPer 100
Insured Vehicle Years, by Model Year
small cars midsize cars large cars
model year
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Collision losses, 2001-2003 passenger
carsrelative average loss payment per insured
vehicle year
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Distribution of collision claims2003 Models
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Collision and PDL overall losses by size
class2001-03 models
mid-size
large
very large
mini
small
small
mid-size
mid-size
large
large
very large
mini
small
Four-door cars
Station wagons and passenger vans
Utility vehicles
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Percent of Collision Claims by Point of ImpactBy
Vehicle Type
28.2
26.6
27.3
11.3
12.4
12.7
10.7
10.7
11.6
3.3
5.0
3.0
4.4
2.8
4.4
4.3
3.9
2.8
5.5
2.4
3.0
3.5
3.4
2.9
5.0
2.5
3.7
5.4
4.6
15.4
5.3
5.8
5.7
5.3
14.8
20.6
Passenger cars
Pickups
Utility vehicles
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Percent of Property Damage Liability Claims by
Point of ImpactBy Vehicle Type
Passenger cars
Pickups
Utility vehicles
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Noncrash fire
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For more information
www.highwaysafety.org