Risk reference charts for speeding based on telematics information

Montserrat Guillen (), Ana M. Pérez-Marín () and Manuela Alcañiz ()
Additional contact information
Montserrat Guillen: Dept. Econometrics, Riskcenter-IREA, Universitat de Barcelona, Av. Diagonal, 690, 08034 Barcelona, Spain
Ana M. Pérez-Marín: Dept. Econometrics, Riskcenter-IREA, Universitat de Barcelona, Av. Diagonal, 690, 08034 Barcelona, Spain
Manuela Alcañiz: Dept. Econometrics, Riskcenter-IREA, Universitat de Barcelona, Av. Diagonal, 690, 08034 Barcelona, Spain

No 202003, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: Reference charts are widely used as a graphical tool for assessing and monitoring children’s growth given gender and age. Here, we propose a similar approach to the assessment of driving risk. Based on telematics data, and using quantile regression models, our methodology estimates the percentiles of the distance driven at speeds above the legal limit depending on drivers’ characteristics and the journeys made. We refer to the resulting graphs as risk reference charts for speeding and illustrate their use for a sample of drivers with Pay-How-You-Drive insurance policies. We find that percentiles of distance driven at excessive speeds depend mainly on total distance driven, the percentage of driving in urban areas and the driver’s gender. However, the impact on the estimated percentile for these covariates is not constant. We conclude that the heterogeneity in the risk of driving long distances above the speed limit can be easily represented using reference charts and that, conversely, individual drivers can be scored by calculating an estimated percentile for their specific case. The dynamics of this risk score can be assessed by recording drivers as they accumulate driving experience and cover more kilometres. Our methodology should be useful for accident prevention and, in the context of Manage-How-You-Drive insurance, reference charts can provide real-time alerts and enhance recommendations for ensuring safety.

Keywords: Motor insurance; Speed; Telematics; Quantile regression; Reference curves; Risk score. JEL classification: C21; G22. (search for similar items in EconPapers)
Pages: 15 pages
Date: 2020-04, Revised 2020-04
New Economics Papers: this item is included in nep-ias, nep-rmg, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ub.edu/irea/working_papers/2020/202003.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:202003

Access Statistics for this paper

More papers in IREA Working Papers from University of Barcelona, Research Institute of Applied Economics Contact information at EDIRC.
Bibliographic data for series maintained by Alicia García ().