#2256. Near-miss telematics in motor insurance

September 2026publication date
Proposal available till 30-05-2025
4 total number of authors per manuscript3510 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Finance;
Accounting;
Economics and Econometrics;
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Abstract:
We present a method to integrate telematics data in a pay-how-you-drive insurance pricing scheme that penalizes some near-miss events. We illustrate our method with a sample of drivers for whom information on near-miss events and claims frequency records are available. We discuss the implications for motor insurance ratemaking. Our pricing principle is to combine a baseline insurance premium with added extra charges for near-miss events indicating risky driving (or discounts) that can be updated on a weekly basis. This procedure provides an incentive for safe driving. In our real-case study illustration, hard-braking and acceleration events as well as smartphone use while driving increase the cost of insurance.
Keywords:
claims frequency; dynamic ratemaking; Poisson model; pricing

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