A METHOD OF MANAGING AN INSURANCE SCHEME AND A SYSTEf
THEREFOR
BACKGROUND OF THE INVENTION
The present invention relates to an insurance system.
In many countries motor vehicle accidents are a leading cause of death and
disability. This impacts negatively on the amount of claims made to a life
insurer and in return this impacts negatively on the premiums being paid by
the insured person as the higher the claims on the life insurance scheme
typically the higher the premiums for members of the scheme.
Various methods employed to motivate people to drive safely have been
attempted but for one reason or another these always fail.
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 and storing data relating to a life insurance agreement
between an insured person and a life insurer including data relating
to at least one premium to be paid to the life insurer and details of
the life insurers obligations to the insured person or their beneficiary
on the occurrence of the insured person dying or suffering disability;
receiving data including information relating to the compliance of the
insured person in at least one programme areas related to motor
vehicle driver behaviours and storing the data in a database;
awarding points to the insured person wherein the points awarded
are related to the compliance of the insured person in the at least
one programme areas; and
using the points awarded to determine a reward for the insured
person from the life insurer.
The reward may take the form of at least one payment from the life
insurer to the insured person.
Alternatively, the reward takes the form of at least one payment from
the life insurer to a motor vehicle insurer that insures the motor vehicle
thereby to reduce the amount that the insured person pays for their
motor vehicle insurance.
The reward may be a periodic reward.
In one example embodiment, the reward is determined based on the
amount of the at least one premium paid to the life insurer.
The points awarded may be used to determine a driver status, wherein
the driver status is used to determine the reward for the driver.
The plurality of programme areas 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.
In one example embodiment, the programme area of driving
performance includes monitoring the manner in which a motor vehicle is
driven.
In this example, the driver performance is measured by:
obtaining driver data from a device associated with a motor vehicle
to be driven by the insured person;
analysing the driver data to determine the manner in which the
motor vehicle has been driven for a past predetermined period; and
using the analysed driver data to determine the one more rewards
for the insured person from the life insurer.
According to another example embodiment there is provided a system for
managing an insurance scheme, the system including:
a database storing data relating to a life insurance agreement
between an insured person and a life insurer including data relating
to at least one premium to be paid to the life insurer and details of
the life insurers obligations to the insured person or their beneficiary
on the occurrence of the insured person dying or suffering disability;
a receiving module for receiving data relating to compliance of the
insured person in at least one programme areas related to motor
vehicle driver behaviours and storing the data in the database;
a calculation module for using the data to determine a reward for
the insured person from the life insurer.
In one example embodiment, the calculation module uses the points
awarded to determine a driver status, wherein the driver status is used
to determine the 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 may include all of vehicle
maintenance, driver education, vehicle insurance claims and driving
performance.
The system may further determine driver performance wherein:
the receiving module obtains driver data from a device
associated with a motor vehicle; and
the 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.
The calculation module may calculate the reward periodically.
The calculation module may calculate the reward based on the amount of
the at least one premium paid to the life insurer.
BRIEF DESCRIPTION OF THE DRAWINGS
Figure 1 illustrates an example system environment in which an
embodiment 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 method
implemented by the system.
DESCRIPTION OF EMBODIMENTS
The present invention relates to a system for managing an insurance
scheme, particularly a so called life-insurance scheme.
An insurance scheme according to the present invention operates with an
insured life paying a premium, typically a monthly premium, to a life insurer.
ln return, the life insurer insures the insured life against the occurrence of
an insured event such as dying, incurring a dread disease or suffering
disability.
Clearly it is in the best interest of both the life insurer and the insured life for
none of the insured events to occur. However, human nature has shown
time and time again that people do not always look after themselves as
they should.
A system according to the present invention is implemented to motivate the
insured life to better driver behaviours thereby minimising their chances of
having an accident.
Referring to Figure 1, a motor vehicle 10 which is to be driven by the
insured life has a telemetry device 12 associated therewith. It will be
appreciated that in one example the telemetry device 12 will be installed in
the motor vehicle either at the time of production or retro-fitted.
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.
In addition, the device has a driver identification module to identify the
driver of the vehicle. This could take the form of a tag that is swiped past a
tag reader wherein the tag contains a unique driver ID. Alternatively this
could take the form of a biometrics reader such as a fingerprint scanner, for
example.
In any event, the data from the device is transmitted to an information
processing system over a communication network 16.
The information processing system could be managed by a life insurer, a
short term insurer and/or a third party.
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 2 to a USB port of a computer and downloading the
data to the computer, which data is then transmitted over the Internet to the
information processing system including server 14.
In one example embodiment, the data is transmitted over a mobile
telephone network 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 data is received at the server 14 and stored in database 18 associated
with the server.
Referring to Figure 2, the server 14 includes a number of modules to
implement the present invention.
The server also includes a network adaptor (not shown) to communicate
over at least one communication network.
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 the illustrated example embodiment, the server 14 includes a receiving
module 20 to receive the data and to write the data to a memory 18.
The memory 18 is typically in the form of a database 18 associated with the
server 14.
In one example the data will include at least an identity of the insured
person or an identification of the motor vehicle 10 or the device 12.
In the later two examples the identity of the insured person is pre-stored in
the database 18 and using the identification of the motor vehicle 10 or the
device 12 the identification of the insured person is retrieved.
Also stored in the memory 18 is data relating to a life insurance agreement
between an insured person and a life insurer including data relating to at
least one premium to be paid to the life insurer and details of the life
insurers obligations to the insured person or their beneficiary for example
on the occurrence of the insured person dying or suffering disability.
Finally, also stored in the memory 18 are details of a short term insurance
policy taken out by the insured person on the motor vehicle 10 to which the
telemetric device 1 is connected.
Once the server 14 receives the data it will analyse the data to determine
the manner in which the motor vehicle has been driven for a past
predetermined period.
To do this the server includes an analysing module 22 which accesses the
memory 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.
The driver data is also analysed to determine mortality information meaning
information relating to the likely mortality of the driver based on the way
they drive.
A calculation module 24 uses the analysed data to determine one or more
rewards for the insured person from the life insurer. This will be explained
in more detail below.
A rewards module 26 is used to effect the award.
In one example embodiment, the data is analysed by the analysing module
22 and 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 awarded 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 in a zero or even a minus
score.
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 the 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
awarded 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 awarded are used by a rewards module 26 to determine
a reward for the driver from the life insurer which 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.
ln 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 vehicle will be taken to a workshop
by the driver for fixing.
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 on 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.
An example of how the calculation module 24 then awards points is as
follows:
t will be appreciated that the actual number of points awarded 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:
It will be appreciated that the way in which the points are awarded 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 one or more rewards are then determined based on the driver status.
In one example embodiment the reward is a payback calculated, for
example, as follows:
It will be appreciated that in this example embodiment the amount of the
reward is dependent on the driver category but also on the amount of the
life insurance premium that they are paying for their life insurance.
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 by paying an amount into
the insured life's bank account or onto their credit or debit card.
In another example, a retail reward may be implemented. One example of
implementing a retail reward is that each driver 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 driver based on the retail spend captured by
transferring funds into a bank account of the driver.
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 insured person pays the
short term insurer.
In order to implement this, the system instructs a financial institution to pay
on an amount from the bank account of the life insurer 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, effectively, the life insurer encourages the insured life to look after
their driving by arranging a reduction on their short term insurance premium
those hopefully having a positive impact on the number of claims to the life
insurer.
In another example embodiment, the reward could be a reduced life
insurance premium payable to the life insurer in a future period for the life
insurance policy of the driver.
Alternatively or in addition, the reward could be an increase in the amount
of life/disability cover for good driver behaviours.
Alternatively or in addition the reward could be a fuel related reward
whereby the driver obtains either an amount of fuel, a discount on a future
fuel purchase, or a refund on a past fuel purchase as a reward.

CLAIMS:
1. A method of managing an insurance scheme, the method including:
receiving and storing data relating to a life insurance agreement
between an insured person and a life insurer including data relating
to at least one premium to be paid to the life insurer and details of
the life insurers obligations to the insured person or their beneficiary
on the occurrence of the insured person dying or suffering disability;
receiving data including information relating to the compliance of the
insured person in at least one programme area related to motor
vehicle driver behaviours and storing the data in a database;
awarding points to the insured person wherein the points awarded
are related to the compliance of the insured person in the at least
one programme area; and
using the points awarded to determine a reward for the insured
person from the life insurer.
2. A method according to claim 1 wherein the reward takes the form of at
least one payment from the life insurer to the insured person.
3. A method according to claim 1 wherein the reward takes the form of at
least one payment from the life insurer to a motor vehicle insurer that
insures the motor vehicle thereby to reduce the amount that the insured
person pays for their motor vehicle insurance.
4. A method according to any preceding claim wherein the reward is a
periodic reward.
5. A method according to any preceding claim wherein the reward is
determined based on the amount of the at least one premium paid to
the life insurer.
6. A method according to any preceding claim wherein the points awarded
are used to determine a driver status, wherein the driver status is used
to determine the reward for the driver.
7. A method according to any preceding claim wherein the plurality of
programme areas include at least some of vehicle maintenance, driver
education, vehicle insurance claims and driving performance.
8. A method according any of claims 1 to 7 wherein the plurality of
programme areas include all of vehicle maintenance, driver education,
vehicle insurance claims and driving performance.
9. A method according to claim 7 or claim 8 wherein the programme area
of vehicle maintenance includes one or more of servicing the vehicle,
checking the vehicle and checking the vehicles tyres.
10. A method according to any one of claims 7 to 9 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.
1 . A method according to any one of claims 7 to 10 wherein the
programme area of vehicle insurance claims includes the number of
claim free years.
12. A method according to any one of claims 7 to 11 wherein the
programme area of driving performance includes monitoring the manner
in which a motor vehicle is driven.
13. A method according to any one of claims 7 to 12 wherein the
programme area of driver performance is measured by:
obtaining driver data from a device associated with a motor vehicle
to be driven by the insured person;
analysing the driver data to determine the manner in which the
motor vehicle has been driven for a past predetermined period; and
using the analysed driver data to determine the one more rewards
for the insured person from the life insurer.
14. A system for managing an insurance scheme, the system including:
a database storing data relating to a life insurance agreement
between an insured person and a life insurer including data relating
to at least one premium to be paid to the life insurer and details of
the life insurers obligations to the insured person or their beneficiary
on the occurrence of the insured person dying or suffering disability;
a receiving module for receiving data relating to compliance of the
insured person in at least one programme area related to motor
vehicle driver behaviours and storing the data in the database;
a calculation module for using the data to determine a reward for
the insured person from the life insurer.
15. A system according to claim 14 wherein the calculation module uses
the points awarded to determine a driver status, wherein the driver
status is used to determine the reward for the driver.
16. A system according to claim 14 or claim 15 wherein the plurality of
programme areas include at least some of vehicle maintenance, driver
education, vehicle insurance claims and driving performance.
17. A system according to claim 14 or claim 15 wherein the plurality of
programme areas include all of vehicle maintenance, driver education,
vehicle insurance claims and driving performance.
18. A system according to claim 16 or claim 17 wherein the programme
area of vehicle maintenance includes one or more of servicing the
vehicle, checking the vehicle and checking the vehicles tyres.
19. A system according to any one of claims 16 to 18 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.
20. A system according to any one of claims 16 to 19 wherein the
programme area of vehicle insurance claims includes the number of
claim free years.
21. A system according to any one of claims 16 to 20 wherein the
programme area of driving score includes monitoring the manner in
which the motor vehicle is driven.
22. A system according to any one of claims 16 to 2 1 further wherein:
the receiving module obtains driver data from a device associated
with a motor vehicle; and
the 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.
23. A system according to any one of claims 14 to 22 wherein the reward
takes the form of at least one payment from the life insurer to the
insured person.
24. A system according to any one of claims 14 to 22 wherein the reward
takes the form of at least one payment from the life insurer to a motor
vehicle insurer that insures the motor vehicle thereby to reduce the
amount that the insured person pays for their motor vehicle insurance.
25. A system according to any one of claims 14 to 24 wherein the
calculation module calculates a reward periodically.
26. A system according to any one of claims 14 to 25 wherein the
calculation module calculates the reward based on the amount of the at
least one premium paid to the life insurer.