Usage-Based Insurance Policy Generation System
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Solution Overview
Problem
Current insurance policies face challenges in accurately determining vehicle usage metrics, offering subscription-based options for individuals and groups, determining current coverage amounts post-trip, charging for high-risk trips, encouraging better driving behaviors, and providing coverage for non-vehicle owners or drivers.
Innovation Solution
A computer system generates predesignated insurance policies with specific coverage amounts and premiums for groups or individuals, adjusts coverage based on real-time telematics data, and offers usage-based insurance for various transportation modes, including micro-mobility options.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional insurance policies are used based on average usage data, then coverage is provided to all users, but newly-licensed drivers pay very high premiums even if they only plan to drive occasionally
Solution Approach 1:
The patent segments the insurance market into traditional average-based pricing and new usage-based pricing tiers. It divides coverage into predesignated units (miles, time, trips) that can be individually tracked and billed, allowing drivers to pay only for actual usage rather than averaging across all policyholders
Solution Approach 2:
The system implements real-time feedback loops where telematics data from vehicles is continuously collected, analyzed, and used to adjust premiums dynamically. This closed-loop system provides accurate measurement of actual usage patterns, enabling precise pricing that reflects individual driving behavior rather than group averages
2Measurement precision
If insurance providers use conventional methods to determine premiums, then policies are generated quickly, but providers cannot accurately determine how often drivers drive or assess dangerous driving behavior
Solution Approach 1:
The patent employs universal telematics devices that can track multiple driving parameters (mileage, speed, acceleration, braking, cornering) simultaneously through integrated sensors. This multi-functional approach allows comprehensive assessment of driving behavior without requiring separate systems for each measurement
Solution Approach 2:
The system uses telematics technology as an intermediary between the driver and insurer, objectively measuring and transmitting driving behavior data. This intermediary eliminates the need for manual reporting or estimation, providing accurate, verifiable data on driving patterns while keeping the interaction simple for the user
3Adaptability or versatility
If predesignated coverage amounts are offered for subscription, then users can select policies based on actual needs, but the system must track and adjust coverage after each trip
Solution Approach 1:
The system performs preliminary actions by pre-calculating and storing predesignated coverage options (e.g., 1000 miles, 5 trips, 10 hours) before the user selects a policy. This allows users to quickly choose from pre-prepared options without real-time calculation delays, while still enabling flexible customization of coverage amounts
Solution Approach 2:
The patent implements continuous tracking of coverage consumption through automated telematics monitoring that operates without interruption. This continuous action ensures real-time updates of remaining coverage after each trip, maintaining accurate policy status without manual intervention or batch processing delays
Data Source
AI summary
A computer system for providing group insurance plans may be provided. The computer system may include a processor in communication with a memory device, and the processor may be configured to: (i) receive registration data associated with a group of users including a list of users included in the group and user data from each user; (ii) generate a plurality of predesignated insurance personal mobility policy plans or usage-based insurance plans for the group including a predesignated coverage amount and a corresponding premium amount over a predesignated time period; (iii) prompt a user of the group to select a predesignated policy; (iv) store the selected predesignated policy along with the group registration data; (v) receive mobility data after each trip of each user of the group; (vi) adjust the selected coverage amount based upon the mobility data; and/or (vii) determine a current coverage amount based upon the adjusted coverage amount.