Xtreme Data Warehousing – Insurance Use Case

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

  1. Salvador Minguijon Reply

    More Info about “Pay as you drive” projects at http://terra.es/personal/smp00000/home_archivos/Pay_as_you_drive_directory.htm

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