System and method for estimating loss propensity of an insured vehicle and providing driving information

• US 8,489,433 B2
• Filed: 07/29/2010
• Issued: 07/16/2013
• Est. Priority Date: 07/29/2010
• Status: Active Grant

• Current Assignee: Insurance Services Office Incorporated (Verisk Analytics Incorporated)
• Original Assignee: Insurance Services Office Incorporated (Verisk Analytics Incorporated)
• Inventors: Altieri, Alexandra, Baldan, John, Befi, Thomas, Craig, Steven C., Ellingsworth, Martin E., Sarrantonio, James, Sirota, Christopher, Smollik, Jared, Ziegelbauer, Dorothy
• Primary Examiner(s): Shaikh, Mohammad Z
• Application Number:
  US12/846,552
• Publication Number:
  US 20120029945A1
• Time in Patent Office: 1,083 Days
• Field of Search: 705 35- 45, 705/4, 705/1.1
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for estimating loss propensity of a vehicle and providing driving information are provided. A loss propensity estimation server receives information from a telematics device installed in a vehicle, determines at least one loss cost area through which vehicle has traveled, and calculates a numeric loss cost factor based upon the at least one loss cost area relative to the amount of risk indicated by the vehicle'"'"'s garaging loss cost. The numeric loss cost factor can be transmitted to an insurer for subsequent use by the insurer in underwriting or pricing a future insurance policy. A driving information database in the loss propensity estimation server stores driving information obtained from the telematics device installed in the vehicle, which can subsequently be transmitted to an insurer.

Claims

1. A system for estimating loss propensity of a vehicle and for providing driving information comprising:

a loss propensity estimation server the server electronically obtaining information over a period of time from a telematics device installed in a vehicle;

means for processing the information to determine at least one trip taken by the vehicle through a plurality of loss cost areas, each of the plurality of loss cost areas representing a geographic territory having a loss cost associated therewith;

means for processing a plurality of loss costs corresponding to the plurality of loss cost areas through which the vehicle has traveled on the at least one trip relative to a garaging loss cost for the vehicle to calculate a numeric loss cost factor, said means for processing further comprises calculating a weighted average of the plurality of loss costs and dividing the weighted average by the garaging loss cost to calculate the numeric loss cost factor; and

means for electronically transmitting the numeric loss fact to an insurer for subsequent use of the factor by the insurer in underwriting or pricing an insurance policy.

2. The system of claim 1, further comprising a driving information database in the loss propensity estimation server for storing driving information obtained from the telematics device installed in the vehicle.

3. The system of claim 2, wherein the loss propensity estimation server transmits the driving information to an insurer.

4. The system of claim 2, wherein the driving information comprises one or more of an identification of loss cost area traversed by a vehicle, a road class, a category corresponding to the time of day, a day of week, a weather category, a cumulative trip mileage category, a category corresponding to a cumulative trip time, a vehicle speed, an acceleration, a deceleration, an indication of lane change activity, a turn indication, data from an on-board vehicle computer, or g-force data.

5. The system of claim of claim 4, wherein the loss propensity estimation server transmits the driving information to the insurer.

6. The system of claim 2, wherein at least a portion of the driving information is codified as a single code transmitted to the insurer.

18. The system of claim 1, wherein at least one of the plurality of loss cost areas is identified by a number unrelated to geographic coordinates or to a location so as to protect location privacy.

19. The system of claim 1, further comprising a plurality of non-contiguous loss cost areas, the vehicle traveling through the plurality of non-contiguous loss cost areas and the loss cost estimation server processing the plurality of non-contiguous loss cost areas to calculate the loss cost factor.

20. The system of claim 19, wherein the plurality of non-contiguous loss cost areas are identified by a single number unrelated to geographic coordinates or to a location.

21. The system of claim 20, wherein at least one of the plurality of non-contiguous loss cost areas is associated with a loss cost corresponding to a specific scope of protection provided by a contract of insurance.

7. A method for estimating loss propensity of a vehicle and providing driving information, comprising the steps of:

electronically obtaining over a period of time information from a telematics device installed in a vehicle;

processing the information at a loss propensity estimation server to determine at least one trip taken by the vehicle through a plurality of loss cost areas, each of the plurality of loss cost areas representing a geographic territory having a loss cost associated therewith;

processing a plurality of loss costs corresponding to the plurality of loss cost areas through which the vehicle has traveled on the at least one trip relative to a garaging loss cost for the vehicle using the loss propensity estimation server to calculate a numeric loss cost factor, wherein said processing step further comprises calculating a weighted average of the plurality of loss costs and dividing the weighted average by the garaging loss cost to calculate the numeric loss cost fact; and

electronically transmitting the numeric loss cost factor to an insurer for subsequent use of the factor by the insurer in underwriting or pricing an insurance policy.

8. The method of claim 7, further comprising storing driving information obtained from the telematics device in a driving information database in the loss propensity estimation server.

9. The method of claim 8, further comprising modifying the future insurance policy based upon the driving information in the driving information database.

10. The method of claim 8, further comprising electronically transmitting the driving information to an insurer.

11. The method of claim 8, further comprising codifying the driving information as a single code for transmission to the insurer.

12. The method of claim 8, wherein the driving information comprises one or more of an identification of loss cost area traversed by a vehicle, a road class, a category corresponding to the time of day, a day of week, a weather category, a cumulative trip mileage category, a category corresponding to a cumulative trip time, a vehicle speed, an acceleration, a deceleration, an indication of lane change activity, a turn indication, data from an on-board vehicle computer, or g-force data.

13. A non-transitory computer-readable storage medium having computer-readable instructions stored thereon which, when executed by a computer system cause the computer system to estimate a loss propensity for a vehicle, the instructions comprising:

electronically obtaining over a period of time information from a telematics device installed in a vehicle;

processing the information to determine at least one trip taken by the vehicle through a plurality of loss cost areas, each of the plurality of loss cost areas representing a geographic territory having a loss cost associated therewith;

processing a plurality of loss costs corresponding to the plurality of loss cost areas through which the vehicle has traveled on the at least one trip relative to a garaging loss cost for the vehicle to calculate a numeric loss cost factor, wherein said processing step comprises calculating a weighted average of the plurality of loss costs and dividing the weighted average by the garaging loss cost to calculate the numeric loss cost factor; and

electronically transmitting the numeric loss cost factor to an insurer for subsequent use of the factor by the insurer in underwriting or pricing an insurance policy.

14. The computer-readable storage medium of claim 13, further comprising storing driving information obtained from the telematics device in a driving information database in the loss propensity estimation server.

15. The computer-readable storage medium of claim 13, further comprising electronically transmitting the driving information to an insurer.

16. The computer-readable storage medium of claim 13, further comprising codifying the driving information as a single code for transmission to the insurer.

17. The computer-readable storage medium of claim 15, wherein the driving information comprises one or more of an identification of loss cost area traversed by a vehicle, a road class, a category corresponding to the time of day, a day of week, a weather category, a cumulative trip mileage category, a category corresponding to a cumulative trip time, a vehicle speed, an acceleration, a deceleration, an indication of lane change activity, a turn indication, data from an on-board computer, or g-force data.