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Road Safety in India

The Sustainable Development Goals include a target to halve the number of road accident-related deaths and injuries by 2020.

Road safety presents a significant problem in India. A high diversity of road traffic including high-speed vehicles and riders on motorised 2 or 3-wheelers, inadequate road structure and improperly maintained vehicles all contribute to high injury and accident rates.

Data from India’s Ministry of Road Transport and Highways identified 486,476 reported road accidents in 2013. This resulted in the injury of 494,893 individuals and 137,572 fatalities. The World Health Road traffic in IndiaOrganisation believes this figure to be much higher, estimating the number of fatalities to have been 238,562. This reflects 16.6 road fatalities per 100,000 inhabitants. Comparatively, there were only 2.9 and 8.5 fatalities per 100,000 inhabitants in the UK and New Zealand respectively, in the same year. This has significant negative implications for public health and for the general welfare of the population.

At the household level, injury or fatality can have socioeconomic consequences. If the injured or deceased does not have insurance, any loss in income or increase in cost owing to care needs could result in their family falling into poverty. The effects are also felt on a national scale. The World Health Organisation estimates that India loses 3% of its GDP annually due to road accidents. Safer road transport will play a crucial role in future economic growth in India.

As 78% per cent of all reported accidents in 2013 were at the fault of a driver, improving the road safety behaviour of drivers could have a transformative impact in improving economic and individual well-being in India.

Case study by Ms Deepshika Amin and Ms Snigdha Peruri

The insurance sector plays a crucial role in helping individuals and societies to manage risk. This case study focuses on motor insurance in India, as road accidents pose a significant risk to economic and individual well-being. Motor insurance is one of the largest forms of insurance globally, and we believe it could play an important part in improving road safety in India and contribute to the Sustainable Development Goals. 

Actuaries’ training includes the use of statistical analysis to understand risks and uncertainties. They are therefore well placed to drive and support risk management efforts by designing products which incentivise and encourage good behaviours. There are a plethora of innovative insurance solutions around the world that India could learn from.

Traffic in India

In France, AXA Direct Insurance’s YouDrive is aimed at young drivers as they have a higher chance of being involved in a road accident. Telematics are central to YouDrive, which collects data on driving behaviour and transmits it to AXA. Thoughtful analysis of this data allows for the identification of patterns and insights which can be factored into pricing models. To incentivise safe driving behaviour, if YouDrive policyholders agree to install a telematics device in their vehicle and are deemed to be driving safely they could receive up to 50 per cent discount on their insurance premiums. In addition, to increase young driver’s awareness of whether they are driving safely YouDrive also provides them with a driving score and feedback every week, as well as overall weekly and monthly scores.

 

Other insurance industry products aimed at improving road safety include:

  • AXA Driving Academy (Greece) which grants premium discounts to young drivers who attend and learn safe driving techniques at its driving academy.
  • The Aviva Drive app automatically records driver journeys through their GPS, monitoring their break, accelerating and cornering skills. Once an individual has driven 200 miles, the app provides a driving score out of 10 which Aviva then uses to calculate a personalised discount.
  • Zurich Insurance Group has also developed a telemetry device to enable monitoring and curbing of risky road behaviour.

Actuarial expertise will be instrumental in developing and applying similar innovative insurance products and initiatives in India and other developing nations. Significant input and collaborative effort from the insurance industry, civil society and relevant governing bodies and regulators will also be essential in driving these initiatives for sustainable global development.  

References

Ministry of Road Transport and Highways (India), ‘Road accidents in India’, 2013. http://morth.nic.in/showfile.asp?lid=1465

United Nations Environment Program Finance Initiative, ‘Insuring safer roads’, 2017. http://www.unepfi.org/psi/wp-content/uploads/2017/05/Insuring_Safer_Roads_2017.pdf

World Health Organisation, ‘Global Status Report on Road Safety 2015’. http://www.who.int/violence_injury_prevention/road_traffic/countrywork/ind/en/

YouDrive https://www.direct-assurance.fr/nos-assurances/assurance-auto-connectee?utm_source=directassurance&utm_medium=web&utm_campaign=youdrivefr

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Events calendar

  • The Great Risk Transfer – Breakfast briefing and launch event

    Staple Inn Hall, High Holborn London WC1V 7QJ
    31 January 2019

    Spaces available

    Launch of the IFoA’s 2020 thought leadership campaign The Great Risk Transfer. The campaign will examine the trend of the transfer of risk from institutions to individuals, and how people can be better equipped to manage the financial risks they now face. At this breakfast event the IFoA will launch a call for evidence on this topic.

  • Sessional Meeting - Silent Cyber Assessment Framework

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    9 December 2019

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    The (re)insurance industry is faced with a growing risk related to the development of information technology (IT). This growth is creating an increasingly digitally interconnected world with more and more dependence being placed on IT systems to manage processes. Note: Registration is from 17.30 in time for the sessional to begin at 18.00.

  • CPD Member Event in Shanghai, China

    Function Room, F39, S1 Fuson Group, the Bund Finance Centre, No.600 Zhongshang East 2nd Road, Huangpu District, Shanghai Chinese address:BFC外滩国际金融金融中心,S1复星集团,39层报告厅,上海中山东二路600号
    9 December 2019

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    The IFoA’s President-elect Tan Suee Chieh will visit Shanghai. We will host CPD and Awards Presenting event on Monday 9 December 2019. The event is part of Mr Tan’s first presidential trip to China.

  • Professional Skills Training - London (10 December 2019)

    Staple Inn, High Holborn, London WC1V 7QJ  
    10 December 2019

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    This event will be of interest to students and recently qualified actuaries.

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2019/2020.  The content and discussion at this session is particularly tailored to actuarial students and newly qualified actuaries working in any area and the format is interactive, so you should come along prepared to take part in the discussions with your peers.

  • IFoA Joint Member Event with the Sunshine Insurance Group, Beijing China

    Room TBC, Kuntai International Plaza, No.12, Chaowai Street, Chaoyang District, Beijing 地址:会议室待定,北京市朝阳区朝外大街乙12号1号楼昆泰国际大厦
    12 December 2019

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    The IFoA’s President-elect Tan Suee Chieh will visit Beijing. We will co-host CPD and Awards Presenting event with the Sunshine Insurance Group on Thursday 12 December 2019. The event is part of Mr Tan’s first presidential trip to China.

  • ARC Sessional Research Event: Drivers of Mortality - Risk Factors and Inequality

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    6 January 2020

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    The authors will focus on a large dataset obtained from the UK’s Office for National Statistics (ONS) and related sources. Data are available at the level of Lower Super Output Areas (LSOAs) – small geographical areas with, typically, 1000-2000 residents and include death counts, exposures and a significant number of socio-economic variables including the index of multiple deprivation (IMD).

  • SIAS Event: My Journey to Data Science, Big Data and AI

    Staple Inn Hall, High Holborn, London, WC1V 7QJ
    7 January 2020

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    Patrick Lee is an actuary who has made the transition to working in software architecture and artificial intelligence (AI). He holds Microsoft Professional qualifications in Data Science, Big Data and AI and is currently working towards a DevOps (the automation of software testing and deployment) qualification. He is a member of the IFoA Council and is also President of the Wessex Actuarial Society. He is also a member of the IFoA and the RSS's joint Data Science Focus Group and will talk on the ethical use of AI. 

  • Spaces available

    This presentation covers the detail for how the matching adjustment is calculated. A small simple example spreadsheet is provided and discussed in detail.

    For actuaries wanting to get more involved with the matching adjustment, this is the opportunity to get a detailed description of the mechanics involved. This includes cashflows derisking, PRA tests as well as hypothecation.

    The presentation is provided by James Sharpe who has worked on a number of matching adjustment calculations with several firms.

  • IFoA Volunteer Recognition Reception

    Staple Inn, 4 High Holborn, Holborn, London WC1V 6DR, UK
    15 January 2020

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    As a thank you to all our Institute and Faculty of Actuaries (IFoA) volunteers, you are invited to join us at Staple Inn Hall, for an evening of drinks, canapes and networking, in London.

    IFoA President, John Taylor, will be attending and will make a speech

    If you support the IFoA as a volunteer (member or non-member), or in any other role, and you are going to be in London on 15 January, please book your place and join us at this reception.

     

  • Sessional Meeting - Operational Risk Dependencies

    Royal College of Physicians of Edinburgh 9 Queen St Edinburgh EH2 1JQ
    20 January 2020

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    The Operational Risk Working Party aims to assist actuaries and others in the modelling and management of operational risk. One of the key challenges in modelling operational risk is the modelling of dependencies between operational risks, and between operational and non-operational risks such as market, credit and insurance risk. Their paper seeks to assist in this regard, and help develop good practice in setting assumptions and modelling operational risk dependencies. 

  • KSS event in Glasgow: Public Sector Pensions

    Hymans Robertson, Glasgow 20 Waterloo St, Glasgow
    30 January 2020

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    – the unappreciated key assumption, the resulting unsustainable promises, the unmanaged risk and the unrecognised debt? 

    Speaker: Allan Martin will present this talk on 30 January in Glasgow, Stirling and Edinburgh. If you wish to register for another location please return to the Events Calendar.

  • KSS event in Stirling: Public Sector Pensions

    M&G Prudential, Stirling Craigforth Campus, Stirling
    30 January 2020

    Spaces available

    – the unappreciated key assumption, the resulting unsustainable promises, the unmanaged risk and the unrecognised debt? 

    Speaker: Allan Martin will present this talk on 30 January in Glasgow, Stirling and Edinburgh. If you wish to register for another location please return to the Events Calendar.

  • KSS event in Edinburgh: Public Sector Pensions

    Hymans Robertson 1, Exchange Place, Semple St, Edinburgh
    30 January 2020

    Spaces available

    – the unappreciated key assumption, the resulting unsustainable promises, the unmanaged risk and the unrecognised debt? 

    Speaker: Allan Martin will present this talk on 30 January in Glasgow, Stirling and Edinburgh. If you wish to register for another location please return to the Events Calendar.

  • Professional Skills Training - London (11 February 2020)

    Staple Inn, High Holborn, London WC1V 7QJ         
    11 February 2020

    Spaces available

    A Trusted Profession

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2019/2020This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • Sessional: Impact of E-cigarettes Working Party

    Royal College of Physicians, 9 Queen St, Edinburgh EH2 1JQ
    24 February 2020

    Spaces available

    This sessional meeting will be of direct interest to actuaries and others working in the in the Health and Care, Life or Pensions sectors or indeed actuaries with an interest in morbidity or mortality. Note: Registration is from 17.30 in time for the sessional to begin at 18.00.

  • Professional Skills Training - Edinburgh (25 February 2020)

    IFoA (Edinburgh), Level 2, Exchange Crescent 7 Conference Square Edinburgh EH3 8RA
    25 February 2020

    Spaces available

    A Trusted Profession

    A 2 hour CPD event designed to meet the IFoA’s Stage 3 Professional Skills Training under the IFoA’s CPD Scheme 2019/2020This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Pensions, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.

  • Spring Lecture 2020, Edinburgh - Vicky Pryce

    Assembly Rooms, 54 George St, Edinburgh EH2 2LR
    25 March 2020

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    What next in Economic Policy?

    Please join us on 25 March 2020 for our annual Spring Lecture presented by Vicky Pryce in Edinburgh. 

  • IFoA Asia Conference 2020, Kuala Lumpur

    CCEC Nexus, 7, Jalan Kerinchi, Bangsar South, 59200 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
    24-25 June 2020
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    The sixth annual Asia Conference once again offers a prestigious line-up of home and international speakers discussing the insurance and financial industry’s innovation and change in Asia. This year's conference in Kuala Lumpur will be hosted by Tan Suee Chieh, IFoA’s first Asian President. He will also make his Presidential address at this conference and will expand on the important elements of IFoA’s new strategy. 

    Additionally, this landmark conference will showcase how the IFoA is reinventing itself to support its members to succeed and thrive in a digital age, within traditional businesses and beyond, as a global organisation. 

    Not to be missed by international industry players, opinion formers, academic and industry leaders, actuaries and non-actuaries.