This was the most interesting of all of these in that it is so simple, yet so controversial. Today for example automotive insurance policies are calculated based on a variety of information that puts the particular driver into a large group of people. If you want to break down the groups further you need to get details of driving behaviour. This gives you the opporunity to move into a smaller group who would pay less and not be subsedizing the bad drivers – in principle.
- Insurance Policy Pricing – voluntary participation
- Monitor driving behaviours
- Leverage geospatial information to get habits to get a price adjustment – even real-time
- Policy based on real behaviours
- Policy based on real-time behaviours – if you start driving irradically or outside of the parameters your rates would go up 10 cents that month.
Is it Feasible
- Yes there are companies who sell GPS enabled tracking devices for your car that can report on thes things.
- Change in process may be the hardest to quantify feasibility.
What are the Issues:
- Can this data be summoned into court and used against you
- Does this penalize people who want to retain their privacy
- Does it really capture the effects of your driving habits? I was in Florida last March and the drivers drove what would appear to be respectibly, but the impact to drivers around them was generally very bad – making them in my eyes awefull drivers.
If you are a member of Forrester Research, here is an article by Ricardo Arruda that talks about this. (I am not a member so have not read it)
Update: IT Business had an article that was along these lines
More Info about “Pay as you drive” projects at http://terra.es/personal/smp00000/home_archivos/Pay_as_you_drive_directory.htm