Transportation Analytics for Telematics-Based Premium Payments

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Solution Overview

Problem

Current computing devices face limitations in calculating insurance premiums based on telematics data from user mobile devices due to lack of specific data structures, inability to assess actual transportation behavior, and inefficiencies in usage-based insurance payment processes, particularly with premiums varying by period and involving multiple payment obligations.

Innovation Solution

A transportation analytics computing device that receives, stores, and analyzes telematics data from user mobile devices to identify trips, calculate insurance premiums, and automatically transfer payments between user, insurer, and transportation platform accounts, utilizing AI and machine learning for accurate risk assessment and streamlined payment processes.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If telematics data from mobile devices is used to calculate insurance premiums, then the accuracy of risk assessment is improved, but the complexity of the payment process increases due to multiple payment obligations and varying premiums

Engineering Contradiction:

Improverisk assessment accuracyVSAvoidpayment process complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent introduces a transportation analytics computing device as an intermediary between mobile devices and insurance companies. This intermediary consolidates telematics data from multiple users, performs centralized premium calculations, and manages payment transactions, thereby simplifying the complex payment process while maintaining accurate risk assessment based on actual transportation behavior data

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent merges multiple separate functions into a single transportation analytics computing device: data collection from mobile devices, telematics analysis, premium calculation, and payment processing. This consolidation reduces payment process complexity by eliminating the need for multiple separate systems to handle different aspects of usage-based insurance

Inventive Principle:

Principle #5Merging (Combining)

2Adaptability or versatility

If manual reconciliation of information is performed by human beings, then flexibility in handling diverse data is improved, but timeliness and accuracy deteriorate

Engineering Contradiction:

Improvedata handling flexibilityVSAvoidprocessing timeliness

Core Design Contradiction:

Adaptability or versatilityVSLoss of time

Solution Approach 1:

The patent replaces manual human reconciliation with an automated computing system that collects telematics data, analyzes transportation behavior, and calculates premiums algorithmically. This substitution maintains flexibility through programmable data processing while dramatically improving timeliness by eliminating manual intervention delays

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The transportation analytics computing device performs self-service by automatically collecting data from mobile devices, processing telematics information, determining premiums, and handling payments without requiring human intermediaries. This automation achieves both flexibility through adaptive algorithms and speed through continuous automated operation

Inventive Principle:

Principle #25Self-service

3Ease of operation

If insurance premium varies from period to period based on usage, then the fairness of insurance pricing is improved, but the complexity of the payment process increases

Engineering Contradiction:

Improvepricing fairnessVSAvoidpayment process complexity

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent implements dynamic premium pricing that adjusts based on actual transportation behavior captured by telematics data. The transportation analytics computing device continuously monitors usage patterns and recalculates premiums in real-time, ensuring fair pricing that reflects actual risk while managing payment complexity through automated adjustments rather than manual renegotiations

Inventive Principle:

Principle #15Dynamics

Data Source

PatentUS20230401650A1Transportation analytics systems and methods using a mobility device embedded within a vehicle

Publication Date: 2023.12.14 STATE FARM MUTAL AUTOMOBILE INSURANCE COMPANY

AI summary

A transportation analytics (TA) computing device may be provided. The TA computing device may include at least one processor in communication with at least one memory device. The at least one processor may be configured to: (1) receive, from a user mobile device corresponding to a user, telematics data corresponding to a trip taken using a transportation platform; (2) store, for each trip, the telematics data in a database in association with a trip identifier and a timestamp; (3) perform a lookup in the database to identify, based upon the timestamps, telematics data corresponding to a time period; (4) calculate, in response to identifying the telematics data, based upon the identified telematics data, a premium amount; and/or (5) transfer, in response to calculating the premium amount, the premium amount from a transportation platform account associated with the transportation platform to an insurer account associated with an insurer.