"Innovation in mobility is both a challenge and a solution. If we make the right choices, join forces and share our knowledge, we have the right strategy."
That is what Association director Geeke Feiter said last Tuesday at an event of the Guarantee Fund and Dutch Bureau (van de Vereende). She spoke during the seminar What will the future of mobility in Europe look like in ten years? and outlined the Dutch perspective on ensuring (car) mobility to a full house in Babylon in The Hague.
She started her story very aptly with her own view of our country. Thinking of Holland, I see wide rivers flowing slowly through endless lowlands, rows of unimaginably thin poplars standing like tall plumes on the horizon. According to her, this first sentence of Hendrik Marsman's poem from 1936 is very peaceful. "It's about the Dutch landscape, with a reference to the threat of flooding, which is more top of mind today than it was ninety years ago. But when I think of a typical Dutch landscape, I think of tulips. People used to stay much closer to home. They lived on their farms or close to the factories where they worked. There were also not many cars, in 1927 there were about 41,000. Transport was limited and life was quite clear."
"When I think of a typical Dutch landscape, I think of tulips. And cycling"
But our country is also a cycling country. We cycle a lot. In nature, but also in the busy city. "And that can get quite complicated, with all those different types of bicycles," says Feiter. "There is discussion about speed, safety and whether or not to wear a helmet. Wearing a helmet can reduce brain damage by almost 65 percent. Making it mandatory would be an easy solution, but that is not very Dutch, given our polder mentality. We always try to find a compromise. This often takes a lot of time, but once a decision is made, support is guaranteed. That's why we join forces and try to convince people to wear a helmet."
So the Dutch love cycling, but how does that relate to the other ways of travelling? Feiter also gave away some figures during her presentation. In our country, with eighteen million people, we travel about 200 billion kilometres a year. On average, that is 11,400 km per person per year. The car is number 1 for us and the bicycle for 2. The means of transport appears to differ mainly per age group. We (almost) all start as car passengers, switch to cycling at the age of 12, and later back to the car and train when we start studying. To then spend our professional years in the car, so that we can start cycling again at the age of 65.
Feiter: "Our number of inhabitants is growing. Moreover, we are getting older. That may be good news for the volume of insurance policies, but is it also good news for the number of victims?"
In this busy field of mobility, insurers are allowed to do their job. This creates the necessary challenges, Feiter believes. She mentioned four in her presentation: traffic victims, cars that are becoming increasingly complex, footprint and the insurance sector that is still often seen as an opponent of the victim.
"Let's start with the victims, with the figures of road deaths in 2023. The death rate among motorists has fallen considerably: from 543 in 2000 to 194 last year. Cyclists are now number 1 (from 233 in 2000 to 270 in 2023). More cyclists than motorists (39 versus 30 percent) die in traffic and if we look at serious physical injury, the share of cyclists even rises to seventy percent."
Feiter is worried. Among other things, about the number of road deaths. "Unfortunately, the Institute for Scientific Research on Road Safety (SWOV) has come to the conclusion that the number of road deaths will not decrease in the future, while the number of victims with serious physical injuries will increase sharply. By 2040, that number will have doubled. The number of (older) cyclists continues to rise and that means that we have to get to work. We have been focusing on the safety of passengers in the car for years and need to shift our focus."
According to Feiter, there is still a world to be won. "SWOV research shows that safe cycle paths, 30 km/h roads and the bicycle helmet greatly increase safety. A bicycle helmet alone can save a hundred road deaths and almost 2,000 serious injuries per year."
"A bicycle helmet can save a hundred road deaths a year"
The second challenge we face is the complexity of the technology. "New cars are full of technological gadgets and are much more complex than they used to be. Insurers receive about 800,000 material claims every year, i.e. without physical injury. Repairing those cars is expensive and requires completely different skills."
Feiter gave a brief outline of the current car industry. There are more and more new brands that are almost all in the same segment: fully electric SUV-like cars. "We're already used to Lynk & Co and BYD, but pay attention to Chery as well. This Chinese car manufacturer will launch no fewer than three new car brands in the Netherlands next year. In different price ranges and for various target groups, but with remarkable innovations. Think of a drone that comes with your car. The drone takes off from your trunk and flies forward to see what is causing that traffic jam or where you can still find a free parking space. The fact that you are not allowed to fly a drone above a road of more than 60 km/h in the Netherlands seems to be just a detail. Therefore, make sure that drone is included in your WAM insurance," Feiter joked.
The complexity will only increase, she predicts. "The more brands are added, the greater the chance that one of those brands will disappear from Europe. How do all those repair companies stay up to date with the correct technical instructions? And are the parts available in time for repair? After all, the new electric vehicles also entail other risks. How do you extinguish a fire? We already have thirty immersion containers in the Netherlands and there are more and more discussions about storing damaged electric vehicles because of the fire risk. Insurers do not want those vehicles next to a business premises and they are right. But then what? Will we soon have to deal with central storage meadows?"
The challenges are great. This also applies to the third challenge: our footprint. Feiter: "Our road traffic contributed seventeen percent of total CO2 emissions in 2022. Almost 57 percent of these were caused by passenger cars and the number of cars in the Netherlands is increasing rapidly. This also applies to traffic jams that are getting longer and heavier. At the same time, the Netherlands (and the financial sector) has committed itself to the Paris climate goals: 49 percent less greenhouse gases by 2030 (compared to 2019). This is not without obligation. The efforts of our financial sector are continuously monitored. In addition, large companies will have to deal with a reporting obligation from CSRD, with which they must reduce their own footprint."
A challenge for insurers, Feiter believes, because we want to be part of the solution, but also want to make a financial (less damage) and social impact. She asked the audience how to deal with customers who cannot afford an electric vehicle?
"How should an insurer deal with customers who cannot afford an electric vehicle?"
It brought her to the fourth and final challenge: the fact that the insurance sector is often still seen as an opponent of the victim. She showed the infamous photo of the huge chain collision in Zeeland. In dense fog, more than 150 cars collided on the A58 in 2014. The complexity of that major accident led insurers to settle the claims of their own customer(s), so that customers could not suffer from a lengthy and complex claims settlement. "That claims handling process for injuries is and will remain important," Feiter emphasised. "Not only for our customers, but also for ourselves. The car insurance market is the only one where an insurer faces the victim instead of next to it. That is why we started an industry-wide change program in 2021, in which we can also settle material damage for our own customer. We also want to shorten the lead time in the event of personal injury and increase transparency for the customer."
These were the four challenges that Feiter mentioned: victims, complexity, footprint and claims handling. But challenges also require solutions. Feiter sees three opportunities, all in the context of innovation:
1. Technology/Smart Cars
2. Data
3. A different type of insurance
Smart cars and Advanced Driver Assistance Systems (ADAS) can help prevent accidents. For the evidence, Feiter referred to the ADAS study of the Association. "That proves that ADAS matters and can help." But Feiter emphatically said that more research needs to be done. "Most systems, including collision detection and lane-keeping assistance, can greatly reduce the likelihood of being detected, but the adaptive cruise control and blind spot detection require even more research."
"Most Advanced Driver Assistance Systems, including collision detection and lane-keeping assistance, can reduce the risk of accidents"
About the second chance, the data, she remarked that "to measure is to know". "Data is essential, so that we know when and where there are risks, so that we can take the step towards prevention even better. Think about what the combination of accident, driving behaviour and vehicle data can contribute to the integrated approach to road safety. It is super important that we (continue to) work together in this."
Feiter also sees opportunities in insuring the driver instead of the vehicle. "This is much more in line with modern mobility, where people are increasingly using different vehicles and are not always the owners. But," she emphasised in conclusion, "that does require the necessary change. At insurers, but also at many other organisations. We are simply not equipped for that yet. And it also requires an amendment to the European Motor Insurance Directive. That will take time, but in the meantime we can already gain experience with all kinds of pilots. Innovation offers opportunities, but it is also a challenge at the same time. I think the key lies in the smart use of that innovation and in smart collaboration. In this way, we can not only make mobility safer and more sustainable, but also keep it insurable."
Curious about the other presentations and interviews? Check out the event's landing page.