Mobile Device Usage-Based Insurance Pricing via Sensor Data
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Solution Overview
Problem
Conventional mobile device insurance arrangements are not customized based on device usage, leading to unequal premiums for users with varying usage patterns.
Innovation Solution
A system that evaluates device usage data from sensors and other sources to determine a likelihood of damage, allowing for customized insurance premiums based on actual usage.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If conventional mobile device insurance arrangements are used, then all users pay the same premium regardless of usage, but this results in unfair pricing where cautious users subsidize heavy users
Solution Approach 1:
The patent changes the parameter of insurance pricing from a fixed uniform rate to a variable rate that depends on measured usage parameters. Sensors monitor device usage patterns, movement, and environmental conditions to dynamically adjust insurance premiums, enabling precise risk-based pricing while maintaining system simplicity through automated sensor data collection and analysis.
2Measurement precision
If usage-based insurance pricing is implemented, then fair premiums are achieved for heavy users, but this requires complex sensor data collection and processing systems
Solution Approach 1:
The patent leverages existing multi-functional sensors in mobile devices (accelerometers, gyroscopes, GPS, microphones) that were originally designed for general device operation. These universal sensors serve dual purposes: their primary functions for device operation and secondary functions for insurance usage monitoring, thereby achieving accurate usage measurement without adding dedicated complex hardware systems.
Solution Approach 2:
The mobile device itself performs the data collection and initial processing of usage information using its built-in sensors and processor. The device autonomously monitors its own usage patterns, environmental conditions, and movement characteristics, then transmits this self-collected data to the insurance provider, eliminating the need for external monitoring equipment or complex intermediary systems.
3Adaptability or versatility
If sensor data is collected to determine likelihood of damage, then customized premiums can be generated, but this increases data processing requirements and system complexity
Solution Approach 1:
The patent applies partial action by selecting and monitoring only the most relevant usage parameters and sensor data points that have the greatest impact on damage risk assessment. Rather than continuously processing all possible sensor data, the system focuses on key metrics such as device movement intensity, drop detection, environmental exposure, and usage patterns, thereby achieving effective premium customization with reduced processing complexity.
Data Source
AI summary
Systems, methods, computer-readable media, and apparatuses for evaluating device usage and generating one or more outputs based on the device usage are provided. For instance, data from one or more sensors within a user personal mobile device may be received and processed to determine movement associated with the device. In addition, an amount of usage (e.g., hours, minutes, etc.) associated with the device may be received. In some examples information regarding the device or user of the device may be received. In some examples, application usage and/or types of applications used may also be received. This data may be processed and a likelihood of damage to the device may be determined. Based on this likelihood, one or more outputs may be determined.