Research On Usage-Based Insurance Premiums And Driving Behavior Scoring Based On GID

Recently, the Usage Based Insurance has successfully attracted lots of insurance companies, which is favorable to make vehicle insurance consumers enjoy discounts or surcharges referring to safe-driving standards. With the rapid development of IoV(Internet of Vehicles)technology and widely popularity of smart-phone, it is possible to provide accurate and reliable theoretical basis of data for UBI by analyzing driving behavior and road condition. Therefore, it is the first time for us to raise a Usage Based Insurance System on Global Identification device, which is comprised of carrier, cloud and client referring to the architecture of IoT(Internet of Things)and takes the data of driving behavior as the core.The reasonable premium rate and personalized insurance services are provided for the insured through analyzing the security level for driving behavior according to the driving behavior and mileage by using the GID which is equipped with a plurality of vehicle terminals to sense and collect the crucial information about the driving behavior.Firstly, a usage-based insurance system based on global identification with the overall carrier-cloud-client architecture is proposed, and the innovative architecture is described by Hierarchical description and functional analysis. and then the developed driving behavior related algorithms including fatigue driving, sharp acceleration/deceleration, hard braking and sharp turning identification algorithm is are proposed on the basis of driving data and information collected from the vehicle terminal device GID.Secondly, an Advanced Entropy Weight and Analytic Hierarchy Process is put forward by the predecessors’ work and these research results, which is determined the weight of driving behavior factors in driving scoring mechanism. The spearman coefficient indicates that there are significant negative correlation between driving behavior scores and the number of claims. And then the crosstabs show that the higher the driving score is, the safer the driving will be, which verify that the mechanism used to score the driving behavior is of rationality in this paper.Thirdly, the coefficient used to adjust the UBI premium rate is obtained through taking the scoring results into consideration comprehensively on the basis of past linkage mechanism between insurance premium rate and claims rate in terms of different cases where the UBI premium rate is adjusted according to different security level. It is proved that the UBI system is of fairness and rationality through the instance analysis.