Autonomous vehicles may sound like a problem for the future, but the technology is already challenging some of the assumptions actuaries use to understand commercial auto risk today.
Recorded at the CAS Spring Meeting in New York City, Milliman actuaries Melissa Huenefeldt and Brekk Hayward join Alicia Burke and guest co-host Michael Henk of AKUR8 to explore what vehicle automation means for reserving. They discuss the potential shift from driver liability to product and software liability, the tradeoff between lower claim frequency and higher severity, and what happens to actuarial models when historical experience becomes less representative of the risk ahead.
The conversation also explores emerging data sources, reliance on engineering expertise, actuarial professionalism, and why reserving teams may need to rethink which assumptions—and which parts of the past—they can still rely on.
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