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Five trends that could have a major impact on vehicle safety and recall dynamics: risk and insurance

As EVs and AVs grow in popularity, Sedgwick reviewed some of the key trends in vehicle recalls over the past year.

The automotive industry, regulators, and consumers continue to invest in electric vehicles (EVs) and autonomous vehicles (AVs), fueled by federal incentives, infrastructure investments, and technology improvements. .

According to Consumer Reports, 14% of U.S. respondents said they would “definitely” buy or lease an electric vehicle only, 22% said they would “seriously consider” an EV, and 35% said they would “consider” an EV. It is possible,” he replied. Nonetheless, consumers are paying attention to public safety and technology-related flaws.

The issue of vehicle safety and recalls is one of five areas Sedgwick highlighted in a recent report summarizing product recall trends in the US economy.

The report reveals that 2022 was a record year for product recalls in the United States. Here are five trends that can give

1) Demand for electric vehicles

Although Congress has yet to pass broad federal EV safety standards, the federal government has enacted several programs to encourage EV adoption.

The Inflation Reduction Act (IRA) passed in August 2022 should help advance the Biden administration’s goal of 50% of all car sales being EVs by 2030.

Manufacturers can benefit from clean vehicle credits by ensuring that at least 50% of their components are sourced from the United States, Canada, or Mexico. In addition, EV buyers are eligible for tax credits.

The National EV Infrastructure (NEVI) Formula Program also sets the standard for maintenance, quality and pricing, and provides assurance that vehicles can be charged wherever vehicle owners are located.

2) Automated vehicle crash or accident reporting

Consumer confidence in EV and AV technology hinges on reducing recalls and safety-related incidents.

The National Highway Traffic Safety Administration (NHTSA) requires automakers and operators of automated driving systems (ADS) and advanced driver assistance systems (ADAS) to report accidents.

Unfortunately, access to crash data is incomplete and unverified. The information available varies widely.

Of the 522 known crashes over the 12-month period, only 220 (41%) provided injury information. Full participation in reporting requirements is required to draw valid conclusions about safety.

3) Over-the-air updates

EVs and AVs rely on firmware and software updates just like smartphones and computers.

Over-the-air (OTA) updates (usually automatic) rely on wireless connectivity. There are two main categories of updates: non-critical and driver-controlled.

Non-essential features include map updates and streaming services. Driver Control updates are mission critical and must be installed for safe vehicle operation.

West Virginia and Virginia have passed nearly identical rules, allowing coverage to car dealers who help consumers update, but car owners have the right to update their data independently. .

Please be aware of new regulations that may affect the renewal of out-of-warranty vehicles.

4) The number of car recalls has plummeted, while car recall events are occurring more frequently.

Vehicle recalls increased by 2.9%, with 252 events in the third quarter.

Although the number of recall events increased, the total number of units affected decreased by 43.2% from 9.2 million to 5.2 million.

Equipment failure was the leading cause of NHTSA recalls for the eighth consecutive quarter, with 52 recalls. Electrical was his second-most common reason, followed by steering, engine and engine cooling, and structural issues.

Tire recalls by unit decreased by 97.7%, a significant change from Q2.

5) Increased visibility-related recalls

Visibility, which accounted for less than 3% of recall events, contributed to the highest number of units recalled in Q3, with one event containing 1.1 million units accounting for 1.2 million (23.4%).

Visibility has not been the leading cause of US car recalls for more than five years. However, with the increasing reliance on electronic eyes, visibility can pose a safety risk if the camera is misaligned or malfunctions.

Exterior lighting, backover prevention, seat belts, and structures followed, each of which trended at around 500,000 units.

Consumer appetite for adoption of EV and AV technologies is growing, but consumers remain skeptical when looking at regulatory actions, recall events, and safety statistics.

“Based on current statistics, no technology is perfect, but self-driving cars can significantly reduce crash-related deaths, which are often the result of driver error, and improve transportation,” said Transportation Secretary Pete Buttigieg. are safer,” he claims.

Sedgwick has advised manufacturers to “mitigate risk by implementing prudent self-certification. [Federal Motor Vehicle Safety Standards], promptly report to NHTSA and vehicle owners if these standards are not met or any deficiencies are identified, and effectively remediate any instances of deficiencies or violations. “

As reported in the Sedgwick Recall Index 2022 Edition 3, product recalls across all industries will reach a 20-year high in 2022, breaking that mark in just three quarters.

As mentioned earlier, automotive wasn’t the only product sector Sedgwick analyzed. The report also covers consumer products, food and beverages, pharmaceuticals and medical devices. As of September 30, he has 1.22 billion units involved in recalls across his five sectors tracked in this report.

Additionally, the report provides insights to mitigate risk and guidance on regulatory issues that business leaders should be aware of.

Another recall trend to watch

trend? The impact of medical device recalls is growing.

“The overall rise is primarily due to an increase in average recall size in the pharmaceutical and medical device industries.

Medical device recall events fell 16.8% to 223 in Q3 2022, while the number of affected units increased 411% to 51.48 million.

Software accounted for 20.2% of recalls, followed by safety, mislabeling, quality and sterility.

Regulatory changes also affect the oversight of medical devices, as the FDA announced a reorganization within the Center for Devices and Radiological Health (CDRH).

This reorganization will impact premarket approvals, compliance, audit reports and recalls, and may lead to policy and implementation changes. &

Peggy Fogarty is a business development and technical writing specialist. She holds a master’s degree in family and consumer sciences from the University of Arizona and a bachelor’s degree in anthropology and urban studies from Rutgers University.she can be reached at [email protected]

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