A METHOD OF MANAGING A DRIVER REWARDS PROGRAMME AND
A SYSTEM THEREFOR
BACKGROUND OF THE INVENTION
The present invention relates to a method of managing a driver rewards
programme and a system therefor, particularly by an insurance scheme for
a motor vehicle.
Drivers of motor vehicles are not motivated in any meaningful way to
improve their driver behaviours thereby aiming toward safer driving.
In addition, the health of the driver is not considered in any way especially
given that healthy drivers are less likely to have accidents.
The present invention seeks to address this.
SUMMARY
According to one example embodiment there is provided a method of
managing an insurance scheme, the method including:
receiving driver data including information relating to the compliance
of a driver in at least one programme area related to motor vehicle
driver behaviours and storing the data in a database;
receiving wellness programme data indicating the compliance of the
driver with a wellness programme and storing the data in a
database; and
using the driver data and wellness programme data to determine a
reward for the driver.
The plurality of programme areas may include at least some of vehicle
maintenance, driver education, vehicle insurance claims and driving
performance.
Alternatively, the plurality of programme areas include all of vehicle
maintenance, driver education, vehicle insurance claims and driving
performance.
The programme area of vehicle maintenance may include one or more of
servicing the vehicle, checking the vehicle and checking the vehicles tyres.
The programme area of driver education may include one or more of a
driving course, a driver assessment, a periodic driver quiz and a carbon
footprint calculation.
The programme area of vehicle insurance claims may include the number
of claim free years.
The programme area of driving performance may include monitoring the
manner in which a motor vehicle is driven.
In one example, the manner in which the motor vehicle is driven is
monitored by:
obtaining driver data from a device associated with a motor vehicle
to be driven by the driver; and
analysing the driver data to determine the manner in which the
motor vehicle has been driven for a past predetermined period.
The method may further include:
awarding points to the driver for compliance with the wellness
programme;
awarding points to the driver for compliance within the at least one
programme area related to motor vehicle driver behaviours; and
at predetermined intervals, calculating the total number of points
awarded to the driver, wherein the greater the number of points the
greater the reward.
The reward may be a reduced premium to be paid to an insurer for
insurance of a motor vehicle.
Alternatively or in addition the reward may be a reduced amount of an
excess to be paid in the event of a claim to an insurer.
According to another example embodiment there is provided a system for
managing a rewards programme, the system including:
a receiving module for receiving driver data including information
relating to the compliance of a driver in at least one programme
area related to motor vehicle driver behaviours and for receiving
wellness programme data indicating the compliance of the driver
with a wellness programme; and
a calculation module for using the data to determine a reward for
the driver.
BRIEF DESCRIPTION OF THE DRAWINGS
Figure 1 illustrates an example system environment in which the
present invention is implemented;
Figure 2 is a block diagram illustrating an example system to
implement the methodologies described herein; and
Figure 3 is a block diagram illustrating an example embodiment
method.
DESCRIPTION OF EMBODIMENTS
The present invention relates to a method of managing a rewards
programme and a system therefor, particularly a rewards implemented by
an insurance scheme for a motor vehicle.
Various insurance schemes are known to insure motor vehicles in the event
of an accident or against theft, for example.
These insurance schemes typically have the owner of the motor vehicle as
the insured person. The insured person pays a premium to the insurer to
insure the motor vehicle against an insured event such as an accident or
against theft, for example.
The quantum of the premium is usually determined using a number of
factors such as the value of the motor vehicle and in certain cases the
driver's age.
The above factors are also used to determine an excess which is a first
amount paid by the insured person in the event of a claim before the
insurer pays towards the claim.
However, these insurance schemes do not take into account driver
behaviour nor vehicle mechanical condition in any meaningful way when
determining the obligations of the motor vehicle owner to the insurer.
Neither do these prior art methodologies take into account the health of the
driver, more specifically whether the driver leads a healthy lifestyle. Drivers
of poor health are more likely to have accidents than drivers in good health.
However this has never been addressed before.
A system and method for addressing this is described below.
Referring to Figure 1 , a motor vehicle 0 is fitted with a telemetry device 12.
The telemetry device 12 is used to monitor a number of aspects of the use
of the motor vehicle.
For example, the device monitors the speed at which the vehicle is
travelling and can therefore calculate average speed and maximum and
minimum speeds, for example.
Where the device includes GPS functionality, for example, the device is
able to determine if speed limits on a particular road have been exceeded.
The device is also able to determine braking habits of the driver either
using the GPS functionality or by using an accelerometer or having one or
more sensors connected to the vehicle or to a deceleration detection
device, for example.
The device is also typically able to detect the distance travelled and if the
driver has driven the vehicle for a long time period without a break.
In addition, the times of the day that the vehicle is being driven can be
captured as night time driving is statistically more dangerous than day time
driving, especially weekend late night driving.
In addition to the above, the device will have the ability to detect the driver's
use of the vehicle including braking, indicating and accelerating to name a
few examples. Thus it could be determined when the vehicle turns without
indicating, for example.
Referring to Figure 2, a server 14 includes a number of modules to
implement the present invention.
In one example embodiment, the modules described below may be
implemented by a machine-readable medium embodying instructions
which, when executed by a machine, cause the machine to perform any of
the methods described above.
In another example embodiment the modules may be implemented using
firmware programmed specifically to execute the method described herein.
It will be appreciated that embodiments of the present invention are not
limited to such architecture, and could equally well find application in a
distributed, or peer-to-peer, architecture system. Thus the modules
illustrated could be located on one or more servers operated by one or
more institutions.
It will also be appreciated that in any of these cases the modules form a
physical apparatus with physical modules specifically for executing the
steps of the method described herein.
In any event, the data from the device 12 is transmitted to a receiving
module of the server 14 over a communication network 16.
It will be appreciated that this could be accomplished in a number of ways.
For example, the data could be transmitted via a communication network
16 as illustrated in the accompanying drawing. This communication
network could be any suitable kind of communication network such as a
mobile communication network, a wireless communication network, a
satellite communication network or a combination of these to name but a
few examples.
Alternatively, the device 12 could be connected to another intermediate
device which downloads the data and transmits the data via the
communication network 16 to the server 14. One example of this could be
connecting the device 12 to a USB port of a computer and downloading the
data to the computer, which data is then transmitted over the Internet to the
server 14.
In one example embodiment, the data is transmitted over a cellphone
networks using the short message service (SMS) protocol.
It will be appreciated that the data could be transmitted at any suitable time
to the server. For example, the data could be transmitted in real time or
near real time or could be transmitted periodically such as daily, weekly or
monthly to name a few examples.
The method may further include motivating the insured person to improve
other driver related behaviours.
In this example embodiment, the receiving module 20 receives compliance
data containing information relating to the compliance of a driver in at least
one of a plurality of programme areas related to motor vehicle driver
behaviour.
The compliance data is stored in a memory 18 typically in the form of a
database 18.
The analysing module 22 analyses the compliance data to determine driver
behaviour. This will be described in more detail below.
The calculation module 24 awards points to the driver wherein the points
allocated are related to the compliance of the driver in one or more of the
programme areas. An example of this is described below.
Finally, the points allocated are used by a rewards module 26 to determine
a reward for the driver will also be described in more detail below.
The plurality of programme areas includes at least some of vehicle
maintenance, driver education, vehicle insurance claims, premium
payments, policy updates and driving performance.
In one example embodiment, the plurality of programme areas includes all
of the abovementioned programme areas.
The programme area of vehicle maintenance includes one or more of
servicing the vehicle, checking the vehicle and checking the vehicles tyres.
Describing these programme areas in more detail, servicing the vehicle
means that the driver has taken the vehicle to a mechanical workshop for a
periodic service to ensure that the vehicle is in good working order.
Typically in such services oil and other lubricants are changed, brake pads
are changed if required and any other mechanical faults that have arisen in
the past period are fixed.
The programme area of checking the vehicle entails taking the vehicle to an
authorised centre were a number of checks on the different parts of the
vehicle are conducted to ensure that the vehicle is in good working order. If
anything is found to be not correct, the driver will be instructed to take the
vehicle to a workshop for fixing and may be awarded further points for this
step.
New vehicles may be exempt from the service check for the first year and
the insured person will be awarded these points on submission of proof that
the vehicle is within its first year since its first registration.
Checking the vehicle tyres entails either having the tyres checked as part of
the above-mentioned checking of the vehicle or alternatively, taking the
vehicle to a specialist tyre centre to have the tyres checked.
In one example embodiment, an interface is created between the server 14
and checking centre via the communications network 16 so that the
checking centre can confirm the results of the check.
In addition to the tyre check the steering, windscreen wipers, lights,
seatbelts, hooter and shock absorbers can be checked at this time.
Bonus Points can be awarded for all of these being in an acceptable
condition.
In all of these cases, the party doing the checking or servicing will capture
data relating to the vehicle and/or driver and periodically transmit this data
to the receiving module 20.
The programme area of driver education includes one or more of a driving
course, a driver assessment, a periodic driver quiz and a carbon footprint
calculation.
Driving courses are attended by drivers to improve their driving skills and
particularly to learn so-called defensive driving skills.
A driver assessment is conducted in one example embodiment by an
assessor taking the driver in the vehicle onto the road and assessing the
driving skills and habits of the driver.
Weaknesses in the skills or habits of the driver may be pointed out and the
driver given the opportunity to correct these in the coming weeks or months
before returning for an updated assessment.
In one example, the driver is given an assessment score.
In another example, the driver assessment is an online questionnaire
designed to highlight certain risks relating to a driver.
In this example, the questionnaire includes two sections namely. 'Driving
habits' and 'State of Vehicle'. For example a question of whether one uses
a cellular telephone to send messages while driving will be asked. At the
end of the questionnaire (approximately 20 questions) the driver will receive
feedback explaining their risk and suggesting ways to mitigate their risks.
Based on the answers received a calculation will be performed to consider
the driver's risk relative to an average driver. The results can be illustrated
to the driver on two risk bars. One illustrates how risky the driver's habits
are, and one illustrates risks relating to the state of the drivers vehicle.
A third risk bar may also be included illustrating a combined risk score.
In addition, the questionnaire may include educational information to
address specific areas such as how to drive in wet weather or what to do in
the event of an accident. The format will be a paragraph followed by a
question relating to the paragraph
In this example, the driver will typically use a user interface device in the
form of a computer with a screen on which is displayed a template for the
driver to capture answers to questions put to them.
The answers are captured and transmitted to the server 14.
Alternatively, the server 14 accesses driver information stored in the
database 18 and obtains the driver's e-mail address.
An e-mail is then sent to the retrieved e-mail address. When the driver
opens the e-mail a template is displayed to them asking them the relevant
questions with options to select various scores.
A driver will send the e-mail back to the server 14 via a communications
network and the receiving module 20. These will be received and written to
the database.
The programme area of premium payments relates to the quantum and
frequency with which the premium payments are made and if they are
made oh time or not and the programme area of policy updates relates to
whether or not the insured person is updating their policy to accurately
reflect what is being insured by the insured person.
The programme area of vehicle insurance claims includes the number of
claim free years on the motor vehicle insurance policy. No fault claims
where the driver was not at fault typically will not be calculated as a claim
for this.
The programme area of driving score includes monitoring the manner in
which the motor vehicle is driven as has been described above.
As described above, receiving module 20 receives the data and writes the
data to database 18.
Once the server 14 receives the driver data it will analyse the data. To do
this the server includes an analysing module 22 which access the database
18 and retrieves the data stored therein.
The retrieved data is then used to calculate a number of factors depending
on the requirements of the insurers.
For example, the data received from the device may include one or more of
speed related data, time of day or night data indicating what time the
vehicle is driven, duration information data relating to the duration of time
that the vehicle is driven without the driver thereof taking a break and
distance information data including the distance that the vehicle travels
over a period of time such as a month.
The speed related data may include one or more of the average speed that
the vehicle is driven and the number of times that the vehicle exceeds a
speed limit on a road on which the vehicle is travelling.
In one example embodiment points are awarded to each of a number of
sub-categories. Thus, points are awarded to the sub-category of speed
which points are then used to determine an overall score. It will be
appreciated that the scoring could be arranged that a higher score is a
successful score or that a lower score is a successful score. In the
illustrated embodiments described herein a higher score will be deemed a
better score than a lower score.
Thus using the example of speed, the driver is allocated an amount of
points if they never exceed the speed limit. Every infraction of the speed
limit would result in a loss of points.
Similarly, for example, no night driving would result in a maximum score
whilst a large amount of night driving would result a zero or even a minus
score.
An example of how the calculation module 24 then awards points is as
follows:
It will be appreciated that the actual number of points allocated may change
and other categories may be introduced.
In one example embodiment the number of points is used to determine a
driver status. An example driver status is as follows:
Driver Status
Red 0
Amber 300
Green 600
Double Green 1000
It will be appreciated that the way in which the points are allocated and
driver status determined could be varied. However, in an example
embodiment the status will be determined periodically, for example every
month.
At the beginning of every calendar month the driver's points are zeroed and
drivers will then be awarded points for having done a multi point check,
annual service, driver assessment or carbon footprint calculation within the
previous 12 months.
Similarly quarterly quiz points will be awarded provided the questionnaire
has been done for that quarter.
Defensive driving courses need to be completed every 3 years or any other
specified period to earn points and if a defensive driving course has been
completed in the past 3 years then the relevant points will be added to the
driver score for the present month.
If confirmation of these point earning events are received midmonth then
points will be awarded immediately therefore contributing to the driver
status in that month.
On the last day of each month the driver's telematic data or a telematic
score will be received and points award points accordingly.
If multiple vehicles are insured then one method of dealing with this is to
use a weighted average to calculate a single score calculated.
This will complete the driver's points for the month which will be added
together to get the driver status for that month.
The above method is integrated with a lifestyle or wellness programme.
An example of such a wellness program is presently managed by the
applicant that manages a traditional life and health insurance plan together
with their wellness program disclosed in the applicant's South African
granted patent number ZA 99/1746 and the commonly owned U.S. Patent
Application Serial No. 09/982,274, which are both hereby incorporated by
reference in their entireties.
In an example wellness program, members participate in approved related
facilities and/or services. For example, members use gymnasiums, Smoke
Enders™ and Weighless™.
In one example, members are awarded points and depending on the total
number of points allocated to a member, they fall within one of five
statuses. In the implementation of the wellness program, these statuses
have been named in ascending order of value, blue, bronze, silver, gold
and diamond. All members are placed initially in the blue status. Once a
member has accumulated a predetermined number of points, his/her status
is upgraded to the next appropriate level.
It is the status level that is then used to determine the one or more
obligations of the owner of the motor vehicle to the insurer.
It will be appreciated that for purposes of the present invention the wellness
programme could be operated by the insurer or could be operated by a
third party that operates the wellness programme and then informs the
insurer of the degree of participation of the insured person with the
wellness programme.
This could occur by a third party transmitting data to the server 14 (Figure
2) operated by the insurer. The data is received at the server 14 and
stored in database 8 associated with the server.
In one example the data will include at least an identity of the insured
person and data identifying the status of the insured person, for example
blue, bronze, silver, gold and diamond.
In order to determine the status, monitoring of the compliance of the
insured person with the wellness programme includes receiving insured
person usage information associated with the insured person's usage of the
wellness program and determining, based on the usage information, a
status level associated with the insured person for the wellness program,
wherein the status level indicates a degree of participation in the wellness
program
The usage information received may include information associated with a
plurality of separate and distinct occurrences of wellness program
participation by the insured person.
In addition, the method may further include determining a wellness status
level associated with the insured person that further includes receiving the
usage information from an information processing system and assigning a
given point value to each separate and distinct occurrence of wellness
program participation.
A total point value is determined based on an accumulation of each given
point value assigned to each separate and distinct occurrence of wellness
program participation.
In one example, the total point value is used together with the driver data to
determine the reward.
In another example, the total point value is compared to a plurality of point
ranges, each point range in the plurality of point ranges being associated
with a status level and identifying a point range in the plurality of point
ranges corresponding to the total point value.
Finally, a wellness status level is assigned depending on the total point
value and the wellness status level is used together with the driver data to
determine the reward.
After calculating the score and associated status, the calculation module 24
uses the driver status together with the wellness status to calculate a
reward for the insured person.
In one example embodiment, the reward is a petrol cash back where the
amount of petrol spent in a prior period is paid back to the insured person.
This can either be paid back to an account of the insured person or in a
preferred embodiment a credit is issued to a credit or debit card that the
insured person has used to purchase petrol.
It will be appreciated that while in this example petrol has been referred to,
this applies equally to any other type of vehicle fuel.
In one example embodiment, calculation module 24 accesses data stored
on the database 18 relating to historic petrol spend using a credit or debit
card. In one example the historic spend is for a calendar month period but
it will be appreciated that this could be any period of time.
The calculation module 24 then uses this to calculate the reward to the
insured person and an example is set out in the table below:
Double Green 17.5% 25% 30% 40% 60%
Triple Green 25% 30% 40% 60% 100%
A rewards module 26 then effects the reward. In one example embodiment
this could be done by communicating with a financial institution via the
communications network 16 and instructing the financial institution to
implement the cash back.
In other example embodiments, the reward could take another form, for
example a discount on an insurance premium payable on an insurance
agreement for a motor vehicle where the amount of the discount depends
on the driver status and the wellness status referred to above.
In another example, a retail reward may be implemented. One example of
implementing a retail reward is that each insured person will be eligible to
apply for a credit card from a company associated with the rewards
company.
This will entitle them to retail partner cash backs for spending at retail
partners associated with the credit card company.
Another example would be to use a non-transactional card to capture retail
spend and then refund the insured person based on the retail spend
captured by transferring funds into a bank account of the insured person.
In any event, this can be implemented by communicating with a financial
institution via the communications network 16 and instructing the financial
institution to implement a cash back by paying an amount into the driver's
bank account or onto their credit or debit card.
In another example embodiment the financial institution pays the funds over
to a short term insurer which funds are then used to reduce the insurance
premium payment on the motor vehicle that the driver pays a short term
insurer.
In order to implement this, the system instructs a financial institution to pay
on an amount to the bank account of the short term insurer. A data
message with information detailing the amount transferred and details of
whom it is transferred for is sent to a system of the short term insurer so
that they are able to keep track of premiums owed to them by the insured
person for the motor vehicle insurance.
Thus it will be appreciated that the person is motivated to not only improve
their driver behaviours but also to look after their health. This aims to
reduce their risk of having an accident.
In addition, there's a thinking that suggests that a person who takes care of
his health is also likely to be observant about his driving habit and thus
becomes a better risk for the insurance company.
This helps ensure the driver's safety while at the same time results in
reduced claims to the insurer and is therefore beneficial to all parties.

CLAIMS:
. A method of managing a rewards programme, the method including:
receiving driver data including information relating to the
compliance of a driver in at least one programme area
related to motor vehicle driver behaviours and storing the
data in a database;
receiving wellness programme data indicating the
compliance of the driver with a wellness programme and
storing the data in a database; and
using the driver data and wellness programme data to
determine a reward for the driver.
2. A method according to claim 1 wherein the plurality of programme
areas include at least some of vehicle maintenance, driver
education, vehicle insurance claims and driving performance.
3. A method according claim 1 wherein the plurality of programme
areas include all of vehicle maintenance, driver education, vehicle
insurance claims and driving performance.
4. A method according to claim 2 or claim 3 wherein the programme
area of vehicle maintenance includes one or more of servicing the
vehicle, checking the vehicle and checking the vehicles tyres.
5. A method according to any one of claims 2 to 4 wherein the
programme area of driver education includes one or more of a
driving course, a driver assessment, a periodic driver quiz and a
carbon footprint calculation.
6. A method according to any one of claims 2 to 5 wherein the
programme area of vehicle insurance claims includes the number of
claim free years.
7. A method according to any one of claims 2 to 6 wherein the
programme area of driving performance includes monitoring the
manner in which a motor vehicle is driven.
8. A method according to claim 7 wherein the manner in which the
motor vehicle is driven is monitored by:
obtaining driver data from a device associated with a motor
vehicle to be driven by the driver; and
analysing the driver data to determine the manner in which
the motor vehicle has been driven for a past predetermined
period.
9. A method according to any preceding claim further including:
awarding points to the driver for compliance with the
wellness programme;
awarding points to the driver for compliance within the at
least one programme area related to motor vehicle driver
behaviours; and
at predetermined intervals, calculating the total number of
points awarded to the driver, wherein the greater the number
of points the greater the reward.
10 . A method according to any preceding claim wherein the reward is a
reduced premium to be paid to an insurer for insurance of a motor
vehicle.
1 . A method according to any preceding claim wherein the reward is a
reduced amount of an excess to be paid in the event of a claim to
an insurer.
12. A system for managing a rewards programme, the system including:
a receiving module for receiving driver data including
information relating to the compliance of a driver in at least
one programme area related to motor vehicle driver
behaviours and for receiving wellness programme data
indicating the compliance of the driver with a wellness
programme; and
a calculation module for using the data to determine a
reward for the driver.
13. A system according to claim 12 wherein the reward determined by
the calculation module includes a reduction in the amount of a
premium to be paid to an insurer for the insurance of a motor
vehicle.
14. A system according to claim 12 or claim 13 wherein the reward
determined by the calculation module includes the amount of an
excess to be paid in the event of a claim to the insurer.
15. A system according to any one of claims 12 to 14 wherein the
plurality of programme areas include at least some of vehicle
maintenance, driver education, vehicle insurance claims and driving
performance.
16. A system according to any one of claims 12 to 14 wherein the
plurality of programme areas include all of vehicle maintenance,
driver education, vehicle insurance claims and driving performance.
17. A system according to claim 5 or claim 16 wherein the programme
area of vehicle maintenance includes one or more of servicing the
vehicle, checking the vehicle and checking the vehicles tyres.
18. A system according to any one of claims 15 to 17 wherein the
programme area of driver education includes one or more of a
driving course, a driver assessment, a periodic driver quiz and a
carbon footprint calculation.
19. A system according to any one of claims 15 to 18 wherein the
programme area of vehicle insurance claims includes the number of
claim free years.
20. A system according to any one of claims 15 to 19 wherein the
programme area of driving score includes monitoring the manner in
which the motor vehicle is driven.
2 1. A system according to any one of claims 15 to 20 further wherein:
the receiving module obtains driver data from a device
associated with a motor vehicle; and
an analysing module analyses the data to determine the
manner in which the motor vehicle has been driven for a
past period to determine driving performance.