Context-Aware Device Protection Plans Through Sensor-Based Risk Assessment
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing insurance or protection plans for consumer electronics devices do not account for the actual use of the device or consumer tendencies, leading to inefficient pricing and coverage.
Innovation Solution
Systems and methods that utilize sensors within consumer electronics devices to detect usage patterns, assess risk factors, and generate customized insurance or protection plans based on device health, user behavior, and device depreciation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional insurance plans are based on retail price or replacement cost, then coverage is provided for all devices uniformly, but the pricing does not reflect actual device usage or risk factors
Solution Approach 1:
The patent transforms the insurance pricing model by changing key parameters from static (retail price only) to dynamic (usage-based metrics). Sensors continuously monitor device conditions including drops, water exposure, location, and usage patterns, converting these physical parameters into risk scoring variables that directly influence insurance premiums and coverage terms.
Solution Approach 2:
The patent replaces the conventional manual claims adjustment process with automated sensor-based detection systems. Instead of relying on customer reports or adjuster assessments, the system uses embedded sensors to automatically detect device events, calculate risk scores, and adjust coverage in real-time, substituting mechanical/physical assessment methods with electronic monitoring.
2Adaptability or versatility
If insurance plans offer uniform coverage based on device price, then simplicity is maintained, but personalization and accuracy in risk pricing are lost
Solution Approach 1:
The patent implements preliminary risk assessment by continuously monitoring device conditions and pre-calculating risk scores before claims are filed. Sensors track usage patterns, device health, and environmental factors in advance, allowing the system to proactively adjust coverage terms and premiums based on accumulated data rather than reacting to events after they occur.
Solution Approach 2:
The system establishes continuous feedback loops where sensor data from device usage continuously informs risk assessment algorithms. This feedback mechanism allows real-time adjustment of insurance parameters based on actual device conditions, creating a dynamic pricing model that adapts to changing risk profiles while maintaining operational efficiency through automated processing.
3Measurement precision
If sensors continuously monitor device usage, then accurate risk assessment is achieved, but energy consumption and device complexity increase
Solution Approach 1:
The patent applies partial monitoring by selectively activating sensors based on device state and risk context. Not all sensors operate at full capacity continuously; instead, the system monitors critical parameters (such as acceleration for drop detection) with high precision while using lower-power sensors for less critical measurements, balancing accuracy requirements with energy conservation.
Data Source
Figure 1
Figure 2
Figure 3
AI summary
Systems and methods are disclosed herein that can detect use of a consumer electronics device and that can generate and offer insurance or protection plans that measure, account, and adjust for the use of the consumer electronics device and consumer tendencies while using the consumer electronics device.