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A “pay-how-you-drive” car insurance approach through cluster analysis

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Abstract

As discussed in the recent literature, several innovative car insurance concepts are proposed in order to gain advantages both for insurance companies and for drivers. In this context, the “pay-how-you-drive” paradigm is emerging, but it is not thoroughly discussed and much less implemented. In this paper, we propose an approach in order to identify the driver behavior exploring the usage of unsupervised machine learning techniques. A real-world case study is performed to evaluate the effectiveness of the proposed solution. Furthermore, we discuss how the proposed model can be adopted as risk indicator for car insurance companies.

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Notes

  1. https://www.statista.com/topics/3087/car-insurance-in-the-united-states/.

  2. http://www.ey.com/Publication/vwLUAssets/ey-introducing-pay-how-you-drive-insurance/$FILE/ey-introducing-pay-how-you-drive-insurance.pdf.

  3. http://www.naic.org/cipr_topics/topic_usage_based_insurance.htm.

  4. https://www.cs.waikato.ac.nz/ml/weka/.

  5. https://play.google.com/store/apps/details?id=com.palmerperformance.DashCommand&hl=it.

  6. https://www.daniel-braun.com/technik/reverse-geocoding-library-for-java/.

  7. http://nominatim.openstreetmap.org/.

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Acknowledgements

This work has been partially supported by H2020 EU-funded projects NeCS and C3ISP and EIT-Digital Project HII and PRIN “Governing Adaptive and Unplanned Systems of Systems” and the EU project CyberSure 734815.

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Authors and Affiliations

  1. Istituto per le Applicazioni del Calcolo “M. Picone”, Consiglio Nazionale delle Ricerche, Naples, Italy

    Maria Francesca Carfora & Albina Orlando

  2. Istituto di Informatica e Telematica, Consiglio Nazionale delle Ricerche, Pisa, Italy

    Fabio Martinelli & Francesco Mercaldo

  3. Department of Engineering, University of Sannio, Benevento, Italy

    Vittoria Nardone

  4. Department of Bioscience and Territory, University of Molise, Pesche, IS, Italy

    Antonella Santone

  5. Department of Information Engineering, University of Pisa, Pisa, Italy

    Gigliola Vaglini

Authors
  1. Maria Francesca Carfora
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  2. Fabio Martinelli
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  3. Francesco Mercaldo
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  4. Vittoria Nardone
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  5. Albina Orlando
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  6. Antonella Santone
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  7. Gigliola Vaglini
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Correspondence to Francesco Mercaldo.

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All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki Declaration and its later amendments or comparable ethical standards.

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Communicated by P. Beraldi, M.Boccia, C. Sterle.

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Carfora, M.F., Martinelli, F., Mercaldo, F. et al. A “pay-how-you-drive” car insurance approach through cluster analysis. Soft Comput 23, 2863–2875 (2019). https://doi.org/10.1007/s00500-018-3274-y

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