Fraud fighters are constantly looking for new approaches to oldproblems while sometimes applying old approaches to new ones.Within the realm of auto claims, p&c insurers are devisingstrategies that meld biomechanical engineering with investigativeacumen and the latest technologies.

Although event data recorders (EDRs)—also referred to as “littleblack boxes”—have been around for years, insurers are finding newways to better utilize the data they collect in order to make moreaccurate liability determinations. To this end, a sister industryhas emerged to offer various products to enhance the value of EDRs.Some of these products may ultimately impact auto claims handlingin a meaningful way.

The Crash Data Retrieval (CDR) tool, for example, is one suchproduct that is assisting insurers in accident investigationstoday. The CDR tool uses a combination of hardware and software toread crash data found in a vehicle's EDR.

Anatomy of an EDR

Sensors located throughout the vehicle feed information back tothe “brains” or electronic control units (ECUs), containedwithin the vehicles Air Bag Control Module (ACM),which istypically found in a fairly well-protected area—for example, underthe driver's seat, the center console, or in another protectedlocation.

If a car hits a tree, the standard EDR data will reflect theexact speed of the car upon impact; the acceleration ordeceleration for a number of seconds before and just after impact;show whether the foot was on the brake or still on the gas; andoffer many other items of fact. Now imagine a precise, multi-secondlooping device that records and saves data at each and everytriggering incident.

Using this real-world data, the government can develop moreeffective occupant protections and motor vehicle safety programs,while manufacturers can collect information with which to improvevehicle safety in a crash event, thereby enhancing safety in futuregenerations of vehicles. Collected data can provide valuableinformation on the severity of the crash, operation of the air bag,and what deployment decision strategies were used during theevent.

Some of the collected data points include any change in forwardcrash speed; the maximum change in forward crash speed; the timefrom the beginning of the crash at which the maximum change inforward crash speed occurs; whether the gas pedal was pressed andwhether the brake was applied, whether the driver's seat belt wasbuckled before the crash; whether the air bag worked correctly; andso on.

Under specific conditions, the EDR will also record thefollowing information: sideways acceleration or force; forward orrearward acceleration or force; vertical acceleration or force;engine RPMs; whether the vehicle rolled over; steering wheeloperation five seconds before the crash; and a host of other itemslisted in the table on the last page of this article.

There is nothing new about EDRs. The automobile manufacturingindustry initially developed them because it needed not only tomake a safer automobile, but to defend itself in cases of “hesaid/she said” litigation. The initial EDR technology caught thepublic eye during the years of phantom acceleration claims againstToyota and has progressed since that time.

Seconds of Data…

With the technology exactly as it is, an EDR readout willprovide technical vehicle and occupant information for a shortamount of time just prior to an event, during an event, and for abrief period after an event. We are talking about seconds, notminutes, of data capture. It's enough data to provide a claimsadjuster or fraud investigator with a fairly good portrayal of whatactually happened.

Witnesses can be less reliable, as there often are conflictingperceptions and accounts of a given incident. EDR technology, onthe other hand, provides indisputable evidence. Even so, raw datais just that…raw data.

The EDR may record pre-crash vehicle dynamics and system status,driver inputs, restraint usage/deployment status, and post-crashdata, such as activation of an automatic collision notificationsystem. While this may draw initial comparisons to an airplane'sinfamous black box, there are some key differences. The black boxon a plane records details about the flight for the entire durationof the trip. An EDR System, on the other hand, records mereseconds of information. Furthermore, the airplane's black boxrecords sound, whereas the EDR unit does not.

Rather, EDR readouts supply technological details via numbersand measurements. As far as we know, none of them include a voiceclip to the effect of “Honey, slow down before you hit that…”followed by a loud noise.

Experts estimate that approximately 64 percent of vehicles hadEDR capability in 2005. Each year, that percentage has increased.The data is there to be not only accessed but also applied inclaims. As we established earlier, various commercially availabletools are able to read and report EDR data. But what is involved inimplementing such tools into the claims adjusting realm?

Navigating Trial Programs

Some major insurers are currently conducting trials with EDRreaders to ascertain potential cost savings. So far, the feedbackhas been promising. The considerations of a trial programinclude:

Standardization. While the majority of vehiclesnow on our highways have EDRs, there was never any absolutestandardization between EDR reporting methods. EDR data isproprietary to each auto manufacturer. Ford has its version; Toyotahas another version; and Honda, still another. So what is differentnow? The National Highway Transportation Safety Administration(NHTSA) has issued a regulation to standardize the data collectedand recorded by an EDR. Beginning with the model year 2013, NHTSAdefined the minimum data set (15 items) that must be collected if amanufacturer decides to voluntarily install an EDR in its vehiclelines, along with requirements for the range of accuracy of EDRdata.

Additionally, as of 2014, it is proposed any new car sold in theUnited States must be equipped with an EDR. This also applies toforeign manufacturers; if you sell the vehicle in the U.S., it musthave an onboard EDR. Because the designs are proprietary, manymanufacturers have significantly added to those minimum data pointsdefined by NHTSA. Items of measurement are continually being addedto the units, limited only by cost and imagination.

Cost of Equipment. If Gigantic InsuranceCompany (GIC) has ten regional claims processing centers, the trialprogram shopping cart would look like this. Two regions (Atlantaserving the eastern U.S. and Los Angeles serving the western U.S.)would each own one top-of-the-line Premium EDR Tool (approximately$10,000 each). Satellite claims personnel; 24 on each side of thecountry, 48 in total would each get a basic EDR tool, currentlypriced just under, let's say, $3,000 each. (Both commerciallyavailable units can take the EDR data snapshots. Premium kitscontain additional cables to take the EDR data snapshots from moreseriously damaged vehicles.)

Now add in the cost of training and the cost to deliver thattraining to those so designated, and GIC is up and running(hypothetically speaking) for less than $190,000. EDR tool hardwareis purchased one time with an annual software renewal required tokeep up with manufacturer changes and data reporting abilities.Considering the above scenario and the cost of today's claims, theROI of implementing an EDR tool could be impressive.

Application. GIC's 50 units would be inconstant use. Capturing the data is not rocket science. The readoutis, in effect, just one more witness statement, untarnished by theability to remember or interprete accurately, or any other humanvariable.

Recognition of Value. The old adage, “a pictureis worth a thousand words” has lost much of its luster with themarch of technology, at least a visual image. To be clear, in thecase of EDR there are no actual pictures. An EDR report is anobjective printout of the crash data—or perhaps the lack of data ifthere was no measurable impact—and has withstood legal challengesbecause it rises above speculation.

Courts can subpoena EDR data, and some states collect data underexisting laws governing crash investigations. Moreover, insurancepolicies might have contract terms related to data collection fromEDRs. It bears mention that nearly 100 court cases have used EDRdata in the proceedings, showing a willingness to allow EDR dataentered as evidence.

Right to Accessibility. So who owns theinformation collected by an EDR? Can the government, insuranceinvestigators or police just waltz in and download the data?Ownership of the EDR and its data is a matter of state law, andsuch provisions vary considerably. NHTSA considers the owner of thevehicle to be the owner of the data collected from an EDR.

The owner can give permission to download EDR data or courts cansubpoena EDR data. Big city police agencies or Highway Patrol unitsthat use the EDR tool collect data under their existing state lawsgoverning crash investigations. For crash investigations conductedby NHTSA, the agency obtains permission from the vehicle ownerbefore downloading the EDR data. Up-to-date policy languageincludes contract terms related to data collection from EDRs.

The Adventures of Rusty Haight

Once a year, usually in late spring, the Las Vegas Speedwaycomes to life in a whole different way. An estimated 200- accidentreconstruction specialists arrive to witness the latest antics(insanity being far too harsh of a word) of Rusty Haight, bestdescribed as the human crash dummy. Rusty, at last count, waswithin near striking distance (no pun intended) of hitting (again)the 1,000 crash mark. Those who know him well were said to beplacing sideline wagers on what crash #1,000 would look like.

Crashes are staged using a series of donated automobiles,trucks, and (this year) even a bus. They have been outfitted withcameras on the inside—to enable a slow motion view of the body'smovement upon impact. These cameras have placed at strategicoutside locations to show, again in slow motion, the sometimesspectacular crumbling of the vehicles. Seeing truly isbelieving.

A car traveling at 15 miles per hour (mph), straight into aconcrete barrier, has near violent results for the properly belteddriver. Any variation in vector can change the expected pattern ofinjury. Two cars, each traveling head-on at 15 mph, have thecombined velocity of about a 30-mph crash; injuries increaseaccordingly.

During most staged crashes, Rusty wears a chest plate, whichserves to spread the force exerted on his body from the seat belt.In the 15-mph crash, he left the plate behind—and while he sufferedmightily, the pictures were all telling. In slow motion, two thingswere very evident. First, instead of the anticipated back/forthflexion extension, Rusty went up off of his seat and then rolledover the seat belt in a left torque. Exploring theexpected biomechanical stressors versus the actualbiomechanical stressors is fodder for another entire article.Suffice it to say, even the old pros, including Rusty, learned athing or two.

EDRs trace their roots to the installation of air bags invehicles. For air bags to operate properly in the event of a crash,automobile manufacturers developed control units to detect when acrash occurs and deploy the air bag if needed. Even the earliestEDR technology involved “thinking” units, albeit in a somewhatprimeval form. (Input: big impact. Result: deploy airbags!). As theair bag control units became more sophisticated, automobiledesigners realized data collected from the control units could beused to further improve air bag design. To collect these datapoints, designers increased the functionally of the air bag controlunit to permit storage of the data after a crash so it could bedownloaded and analyzed later. They also learned to store eventsthat were significant enough to register, but not significantenough to deploy the airbag.

Automatic collision notification (ACN) systems and EDRs areseparate functions. ACN is a system that can automatically notify athird party (such as a 911 operator or a call center) when a car isinvolved in a collision. Some cars and light trucks have ACNdevices, such as GM's On- Star™ system. Some of these systems usedata from the EDR to determine crash severity, thereby helping toensure an appropriate level of medical response. Technology allowsthe ambulance to be summoned even if the driver is upside down in aditch and unconscious.

Who Owns the Information?

Ownership of the EDR and EDR data is a matter of state law, andsuch provisions vary considerably. The owner can give permission todownload EDR data. In addition, courts can subpoena EDR datathrough court orders, and some states collect data under theirexisting state laws governing crash investigations. For crashinvestigations conducted by NHTSA, the agency obtains permissionfrom the vehicle owner before downloading the EDR data. Recentlydrafted insurance policy wording may have contract terms related todata collection from EDRs.

Some vehicle manufacturers have licensed a third party todevelop the downloading process tools that permit owners ofvehicles to download data from an EDR. Contact the manufacturer ofthe vehicle for information on tools to download EDR data.

Emerging Applications

While EDR reports have been widely used by law enforcement andthe accident reconstruction communities, there is currently a pushto involve EDR reporting in the used car and fleet managementindustries to help improve the transparency of the vehicle beingoffered for sale and close the gap in vehicle history reporting. Atypical scenario would be to get the EDR data from a vehicle beingbrought in for a trade-in or lease return to get a truerepresentation of the vehicles condition. An EDR report will mayhelp analyze the vehicle safety systems along with verificationthat there are no unreported stored events that may degrade thevehicles safety systems or the vehicle itself.