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Biometric and Performance Based Pricing

IP.com Disclosure Number: IPCOM000176273D
Original Publication Date: 2008-Nov-11
Included in the Prior Art Database: 2008-Nov-11
Document File: 1 page(s) / 40K

Publishing Venue

IBM

Abstract

A business method whereby vehicle insurers can offer tailored premiums based on positively identifying an individual via biometrics and by providing a set of criteria to be loaded by the engine management system in the vehicle.

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Biometric and Performance Based Pricing

Vehicle insurance is often sold on the basis of at least two factors: a risk assessment of the possibility of an individual making a claim; and the characteristics of the vehicle to be insured. This approach has the following disadvantages:
1) It is not possible to guarantee that the person driving the vehicle is the insured person
2) No account is made for how the vehicle is driven e.g. excessive speed

This paper proposes a business method whereby vehicle insurers can offer tailored premiums based on positively identifying an individual using biometric information and by providing a set of criteria to be loaded by the engine management system in the vehicle. The advantages of this system are that it can identify the driver and by controlling the way a car performs it can reduce the risk that the driver is involved in an accident. For example, it would be possible to allow an inexperienced driver to be insured on a high-performance vehicle by restricting performance characteristics of the vehicle, such as:
1. Maximum speed restrictions for each gear.
2. Restricting the engine power to an overall predetermined level.
3. Limiting the number of passengers allowed whereby detection of the number of passengers is done by the existing seatbelt warning system.

The business method is best illustrated by the following example:
1. The insurer advertises rates based on the make/model of a vehicle an...