Autonomous Vehicle Software Version Risk Assessment for Insurance Pricing
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Solution Overview
Problem
Current insurance premium determination methods for autonomous vehicles do not account for the use of autonomous operation features, leading to inadequate risk assessment and pricing.
Innovation Solution
A system and method for updating autonomous vehicle software and assessing risk levels, which involves identifying vehicles with autonomous features, determining changes in risk levels, and installing software updates based on criteria that meet specific thresholds, while notifying and obtaining acceptance from insurance customers, thereby adjusting insurance policy costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional insurance premium determination methods are used for autonomous vehicles, then the pricing process is simple and quick, but the risk assessment is inadequate and does not account for autonomous operation features
Solution Approach 1:
The patent segments the risk assessment process into multiple components: autonomous feature identification, software version detection, risk level determination, and premium calculation. This segmentation allows the system to handle complex risk assessment by breaking it down into manageable steps, improving measurement precision without overwhelming system complexity
Solution Approach 2:
The patent introduces an intermediary assessment system that acts as a mediator between the autonomous vehicle features and the insurance pricing mechanism. This intermediary layer evaluates autonomous operation features and software versions, then translates these evaluations into risk levels that can be used for premium determination, bridging the gap between technical vehicle attributes and insurance pricing requirements
2Reliability
If software updates are implemented for autonomous features, then safety and performance improve, but system complexity and update management burden increase
Solution Approach 1:
The patent implements preliminary action by requiring software version assessment and risk level determination before updates are deployed. The system evaluates the current software state, assesses potential risk changes, and determines update necessity in advance, preventing unnecessary updates and reducing management complexity while maintaining high reliability
Solution Approach 2:
The patent establishes a feedback mechanism where software updates are assessed for their impact on risk levels, and this feedback influences future update decisions and premium adjustments. The system continuously monitors software versions, evaluates their safety implications, and uses this feedback to manage updates systematically, reducing complexity through data-driven decision making
3Measurement precision
If insurance premiums are adjusted based on autonomous feature updates, then pricing accuracy improves, but the administrative process becomes more complex
Solution Approach 1:
The patent implements self-service by enabling automated assessment of software versions, automatic determination of risk levels, and automated premium adjustment calculations. The system performs these tasks without requiring extensive manual administrative intervention, improving precision while maintaining ease of operation through automation
Solution Approach 2:
The patent uses parameter changes by adjusting premiums based on quantifiable changes in software versions and risk levels. Instead of complex qualitative assessments, the system changes premium parameters systematically based on measurable software attributes and evaluated risk factors, simplifying the administrative process while improving accuracy
Data Source
AI summary
Methods and systems for monitoring use, determining risk, and pricing insurance policies for a vehicle having autonomous or semi-autonomous operation features are provided. In certain aspects, with the customer's permission, a computer-implemented method for updating an autonomous operation feature may be provided. An indication of a software update associated with the autonomous operation feature may be received, and several autonomous or semi-autonomous vehicles having the feature may be identified. The update may be installed within the several vehicles, such as via wireless communication. Also, a change in a risk level associated with the update to the autonomous operation feature may be determined, and an insurance discount may be determined or adjusted. As a result, an insurance discount may be provided to risk averse customers that affirmatively share their vehicle data with an insurance provider, and promptly and remotely receive new versions of software that operate autonomous vehicle safety features.