Millennials Acceptance of Insurance Telematics: An Integrative Empirical Study

Insurance telematics is a recent technology-enabled service innovation advanced by insurance companies and adopted by millions of drivers worldwide. This research study explores the insurance telematics technology acceptance and use among the new Millennials generation, which represents both a challenge and an opportunity for insurers. Drawing on the Technology Acceptance Model (TAM) and the Theory of Planned Behaviour (TPB), the study uses data from 138 Millennials in the USA to delve into their perceived attitudinal behavior and intention to use insurance telematics. The findings provide empirical confirmation of the integrative and predictive power of the proposed combined theoretical framework (TAM-TPB) to explain insurance telematics adoption and use. The results also suggest a sophistication-level shift in Millennials preferences from functionality evaluation to applicability value sought through the adoption and use. And the findings ascertain the role of perceived enjoyment, trust, and social media as critical factors influencing Millennials attitudinal behavior and intention to use insurance telematics. Considering these results, the authors further discuss implications for scholars and practitioners, and suggest future research directions

Millennials Acceptance of Insurance Telematics: An Integrative Empirical Study

Insurance telematics is a recent technology-enabled service innovation advanced by insurance companies and adopted by millions of drivers worldwide. This research study explores the insurance telematics technology acceptance and use among the new Millennials generation, which represents both a challenge and an opportunity for insurers. Drawing on the Technology Acceptance Model (TAM) and the Theory of Planned Behaviour (TPB), the study uses data from 138 Millennials in the USA to delve into their perceived attitudinal behavior and intention to use insurance telematics. The findings provide empirical confirmation of the integrative and predictive power of the proposed combined theoretical framework (TAM-TPB) to explain insurance telematics adoption and use. The results also suggest a sophistication-level shift in Millennials preferences from functionality evaluation to applicability value sought through the adoption and use. And the findings ascertain the role of perceived enjoyment, trust, and social media as critical factors influencing Millennials attitudinal behavior and intention to use insurance telematics. Considering these results, the authors further discuss implications for scholars and practitioners, and suggest future research directions

From Physical to Cyber: Escalating Protection for Personalized Auto Insurance

Nowadays, auto insurance companies set personalized insurance rate based on data gathered directly from their customers' cars. In this paper, we show such a personalized insurance mechanism -- wildly adopted by many auto insurance companies -- is vulnerable to exploit. In particular, we demonstrate that an adversary can leverage off-the-shelf hardware to manipulate the data to the device that collects drivers' habits for insurance rate customization and obtain a fraudulent insurance discount. In response to this type of attack, we also propose a defense mechanism that escalates the protection for insurers' data collection. The main idea of this mechanism is to augment the insurer's data collection device with the ability to gather unforgeable data acquired from the physical world, and then leverage these data to identify manipulated data points. Our defense mechanism leveraged a statistical model built on unmanipulated data and is robust to manipulation methods that are not foreseen previously. We have implemented this defense mechanism as a proof-of-concept prototype and tested its effectiveness in the real world. Our evaluation shows that our defense mechanism exhibits a false positive rate of 0.032 and a false negative rate of 0.013.Comment: Appeared in Sensys 201

Map-aided dead-reckoning using only measurements of speed

This is the author accepted manuscript. The final version is available from the publisher via the DOI in this recordWe present a particle-based framework for estimating the position of a vehicle using map information and measurements of speed. The filter propagates the particles’ position estimates by means of dead-reckoning, and then updates the particle weights using two measurement functions. The first measurement function is based on the assumption that the lateral force on the vehicle does not exceed critical limits derived from physical constraints. The second is based on the assumption that the driver approaches a target speed derived from the speed limits along the upcoming trajectory. Assuming some prior knowledge of the initial position, performance evaluations of the proposed method indicate that end destinations often can be estimated with an accuracy in the order of 100 [m]. These results expose the sensitivity and commercial value of speed data collected in many of today’s insurance telematics programs, where the data is used to adjust premiums and provide driver feedback. We end by discussing the strengths and weaknesses of different methods for anonymization and privacy preservation in telematics programs

Risk assessment of vehicle cornering events in GNSS data driven insurance telematics

We propose a framework for the detection of dangerous vehicle cornering events, based on statistics related to the no-sliding and no-rollover conditions. The input variables are estimated using an unscented Kalman filter applied to global navigation satellite system (GNSS) measurements of position, speed, and bearing. The resulting test statistic is evaluated in a field study where three smartphones are used as measurement probes. A general framework for performance evaluation and estimator calibration is presented as depending on a generic loss function. Further, we introduce loss functions designed for applications aiming to either minimize the number of missed detections and false alarms, or to estimate the risk level in each cornering event. Finally, performance characteristics of the estimator is presented as depending on the detection threshold, and on design parameters describing the driving behavior. Since the estimation only uses GNSS measurements, the framework is particularly well-suited for smartphone-based insurance telematics applications, aiming to avoid the logistic and monetary costs associated with e.g., on-board-diagnostics or black-box dependent solutions. The design of the estimation algorithm allows for instant feedback to be given to the driver, and hence, supports the inclusion of real time value added services in usage-basedinsurance programs.QC 20150316</p

A telemática do seguro como uma ferramenta para melhorar a segurança rodoviária no contexto do mercado russo de auto-seguro

The relevance of the research is determined by the objective need for innovative technological solutions for traffic safety. The paper studies the main trends in the Russian auto market. The characteristics of the types of technological innovation in insurance. It is studied in detail the company's telematics product Raxel Telematics, which allows comprehensively influence the risks arising from the driver, such as the number of accident rate driving style, car parts wear and increased risk of the use of vehicle on the road. An attempt is made in practice to assess the effectiveness of this product in the Russian market. In particular, it was found that the number of road accidents with victims after the application of customer notification system about the need to be serviced decreased 3 times and considerably lower in relation to the global statistics. Identified the drivers of grows and barriers to the development of smart insurance in Russia. The study confirms the need for the insurance telematics in the Russian market with the aim of revitalizing the auto insurance and reduce road traffic injuries and deaths.La relevancia de la investigación está determinada por la necesidad objetiva de soluciones tecnológicas innovadoras para la seguridad del tráfico. El artículo estudia las principales tendencias en el mercado automovilístico ruso. Las características de los tipos de innovación tecnológica en seguros. Es estudiado en detalle el producto telemático de la compañía, Raxel Telematics, que permite influir de manera integral en los riesgos derivados del conductor, como el número de accidentes, el desgaste de las piezas del automóvil y el mayor riesgo de uso del vehículo en la carretera. En la práctica, se intenta evaluar la efectividad de este producto en el mercado ruso. En particular, se encontró que el número de accidentes de tráfico con víctimas después de la aplicación del sistema de notificación al cliente sobre la necesidad de recibir servicio disminuyó 3 veces y fue considerablemente menor en relación con las estadísticas globales. Identificó los impulsores del crecimiento y las barreras para el desarrollo de seguros inteligentes en Rusia. El estudio confirma la necesidad de la telemática del seguro en el mercado ruso con el objetivo de revitalizar el seguro de automóviles y reducir las lesiones y muertes causadas por el tránsito.A relevância da pesquisa é determinada pela necessidade objetiva de soluções tecnológicas inovadoras para a segurança no trânsito. O artigo estuda as principais tendências do mercado automobilístico russo. As características dos tipos de inovação tecnológica em seguros. Estudou em detalhe o produto telemático da empresa Raxel Telematics, que permite influenciar de forma abrangente os riscos decorrentes do condutor, tais como o número de acidentes com o estilo de condução, o desgaste das peças e o aumento do risco de utilização do veículo na estrada. Uma tentativa é feita na prática para avaliar a eficácia deste produto no mercado russo. Em particular, verificou-se que o número de acidentes rodoviários com vítimas após a aplicação do sistema de notificação ao cliente sobre a necessidade de ser atendido diminuiu 3 vezes e consideravelmente menor em relação às estatísticas globais. Identificou os drivers de crescimentos e barreiras para o desenvolvimento de seguro inteligente na Rússia. O estudo confirma a necessidade da telemática de seguros no mercado russo com o objetivo de revitalizar o seguro de automóveis e reduzir as lesões e mortes no trânsito

Fusion of OBD and GNSS Measurements of Speed

This is the author accepted manuscript. The final version is available from Institute of Electrical and Electronics Engineers (IEEE) via the DOI in this record.There are two primary sources of sensor measurements for driver behavior profiling within insurance telematics and fleet management. The first is the on-board diagnostics system, typically found within most modern cars. The second is the global navigation satellite system, whose associated receivers commonly are embedded into smartphones or off-the-shelf telematics devices. In this paper, we present maximum likelihood and maximum a posteriori estimators for the problem of fusing speed measurements from these two sources to jointly estimate a vehicle's speed and the scale factor of the wheel speed sensors. In addition, we analyze the performance of the estimators by use of the Cramér-Rao bound, and discuss the estimation of model parameters describing measurement errors and vehicle dynamics. Last, simulations and real-world data are used to show that the proposed estimators yield a substantial performance gain compared to when employing only one of the two measurement sources

Smartphone placement within vehicles

This is the author accepted manuscript. The final version is available from the publisher via the DOI in this recordSmartphone-based driver monitoring is quickly gaining ground as a feasible alternative to competing in-vehicle and aftermarket solutions. Currently the main challenges for data analysts studying smartphone-based driving data stem from the mobility of the smartphone. In this paper, we use kernel-based k-means clustering to infer the placement of smartphones within vehicles. The trip segments are mapped into fifteen different placement clusters. As a part of the presented framework, we discuss practical considerations concerning e.g., trip segmentation, cluster initialization, and parameter selection. The proposed method is evaluated on more than 10 000 kilometers of driving data collected from approximately 200 drivers. To validate the interpretation of the clusters, we compare the data associated with different clusters and relate the results to real-world knowledge of driving behavior. The clusters associated with the label “Held by hand” are shown to display high gyroscope variances, low maximum speeds, low correlations between the measurements from smartphone-embedded and vehicle-fixed accelerometers, and short segment durations

Smartphone-based vehicle telematics: a ten-year anniversary

This is the author accepted manuscript. The final version is available from the publisher via the DOI in this recordJust as it has irrevocably reshaped social life, the fast growth of smartphone ownership is now beginning to revolutionize the driving experience and change how we think about automotive insurance, vehicle safety systems, and traffic research. This paper summarizes the first ten years of research in smartphone-based vehicle telematics, with a focus on user-friendly implementations and the challenges that arise due to the mobility of the smartphone. Notable academic and industrial projects are reviewed, and system aspects related to sensors, energy consumption, and human-machine interfaces are examined. Moreover, we highlight the differences between traditional and smartphone-based automotive navigation, and survey the state of the art in smartphone-based transportation mode classification, vehicular ad hoc networks, cloud computing, driver classification, and road condition monitoring. Future advances are expected to be driven by improvements in sensor technology, evidence of the societal benefits of current implementations, and the establishment of industry standards for sensor fusion and driver assessment