Sensor-Based Device Protection Plans for Usage-Aware Risk Pricing
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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 depreciation, offering discounted rates when appropriate.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If insurance plans are based on retail price or replacement cost, then coverage amount is sufficient, but pricing is inefficient and does not reflect actual risk
Solution Approach 1:
The system continuously collects feedback from device sensors (accelerometer, gyroscope, ambient light sensor) about usage patterns, drop events, and environmental conditions. This feedback is used to dynamically adjust insurance premiums and coverage terms, creating a closed-loop system that responds to actual device condition and usage behavior rather than relying on static retail price estimates.
Solution Approach 2:
The insurance plan transitions from a static, fixed-premium model to a dynamic model where coverage terms and premiums automatically adjust based on real-time device data. The system monitors device health metrics, usage intensity, and risk factors, then dynamically modifies policy parameters to reflect current risk levels, allowing the insurance product to adapt its characteristics throughout the policy term.
2Device complexity
If insurance plans use fixed pricing models, then administration is simple, but they fail to account for actual device use and consumer behavior
Solution Approach 1:
The system performs preliminary monitoring and assessment of device usage patterns, drop history, and environmental factors before finalizing the insurance premium and coverage terms. By proactively collecting and analyzing this data upfront, the system can pre-adjust policy parameters to reflect actual risk conditions, avoiding the need for complex real-time administrative adjustments while still achieving customized pricing.
Solution Approach 2:
The device essentially insures itself by using its own built-in sensors and processing capabilities to monitor its own condition, usage patterns, and risk factors. The device self-assesses its risk profile and triggers appropriate insurance actions without requiring external human intervention or complex administrative processing, maintaining simplicity while enabling customization.
3Measurement precision
If sensors continuously monitor device usage, then risk assessment accuracy improves, but energy consumption increases
Solution Approach 1:
Instead of continuous monitoring, the system employs periodic sampling of sensor data at strategically determined intervals. The monitoring frequency adjusts based on risk level, device state, and environmental conditions, allowing the system to maintain adequate risk assessment accuracy while minimizing energy consumption by avoiding unnecessary continuous sensor operation during low-risk periods.
Solution Approach 2:
The system applies partial monitoring by selectively activating specific sensors based on current risk assessment needs rather than continuously activating all sensors. When risk is low, the system uses minimal sensing; when risk increases, it intensifies monitoring. This partial action approach balances measurement precision requirements with energy conservation by applying the appropriate level of monitoring only when necessary.
Data Source
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. The systems and methods may include determining an index value for a make and model of the consumer electronics device.