Blockchain Subrogation via Vehicle Sensor Data
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Solution Overview
Problem
The insurance claim process, particularly subrogation claims, is lengthy and complicated due to the need for extensive communication and verification among various parties, often requiring third-party intermediaries, which increases costs and inefficiencies.
Innovation Solution
A blockchain-based system that utilizes sensor data from vehicles, evidence oracles, and machine learning to determine fault and facilitate subrogation processes, enabling secure, decentralized, and automated data sharing and payment transactions through smart contracts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional insurance claim processing is used, then parties can exchange information and verify fault, but the process becomes lengthy and complicated requiring multiple communications and intermediaries
Solution Approach 1:
The system performs preliminary actions by automatically collecting and storing sensor data, vehicle information, and collision details on the blockchain before the claim process begins. This pre-prepared data eliminates the need for lengthy information exchange during claim processing, as all necessary evidence is already verified and stored immutably on the distributed ledger.
Solution Approach 2:
The patent replaces the mechanical system of manual communications, emails, and third-party intermediaries with an automated blockchain-based system. Smart contracts automatically execute fault determination and payment transactions based on predefined conditions, eliminating the need for human intermediaries and reducing processing time while maintaining reliability.
2Ease of operation
If third-party intermediaries are used to facilitate subrogation negotiations, then communications between insurers can be managed, but costs and inefficiencies increase
Solution Approach 1:
The system extracts and eliminates third-party intermediaries from the subrogation process by implementing a peer-to-peer blockchain network where insurers can directly communicate and transact. The blockchain itself serves as the intermediary infrastructure, removing the need for additional third-party coordination services and reducing both costs and system complexity.
Solution Approach 2:
The smart contracts enable self-service by automatically executing negotiations and payments based on objective criteria stored on the blockchain. Insurers can directly manage their own claims and subrogation processes without requiring external intermediaries, as the system autonomously handles communications, fault determination, and financial transactions.
3Measurement precision
If extensive information verification is performed among various parties, then fault can be accurately determined, but the process becomes complicated and time-consuming
Solution Approach 1:
The blockchain serves as an intermediary that automatically verifies and stores information from multiple sources including sensor data, vehicle information, and collision details. This centralized yet decentralized verification mechanism ensures accurate fault assessment while improving efficiency, as the blockchain automatically validates information against stored criteria without requiring manual verification between parties.
Solution Approach 2:
The system employs multi-functional smart contracts that simultaneously perform information verification, fault determination, and payment execution. This universal approach consolidates multiple verification steps into a single automated process, maintaining high accuracy in fault assessment while significantly improving processing efficiency by eliminating redundant verification actions.
Data Source
AI summary
Systems and methods are disclosed with respect to using a blockchain for managing the subrogation claim process related to a vehicle accident, in particular, utilizing a vehicle's mode of operation as part of the subrogation process. An exemplary embodiment includes receiving sensor data; determining that a vehicle collision occurred based upon, at least in part, analysis of the sensor data, such as image, audio, telematics, or autonomous vehicle system data; determining an operational mode for the vehicle based upon, at least in part, analysis of the sensor data, and the operational mode at the time of the accident; determining a percentage of fault for a driver or autonomous or semi-autonomous vehicle system, or lack thereof, based upon the sensor data, and whom or which autonomous or semi-autonomous vehicle system was in control of the vehicle at the time of the vehicle collision.