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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/183219
Near‐miss telematics in motor insurance
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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.
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GUILLÉN, Montserrat, NIELSEN, Jens Perch and PÉREZ MARÍN, Ana María. Near‐miss telematics in motor insurance. Journal of Risk and Insurance. 2021. Vol. 88, num. 3, pags. 569-589. ISSN 0022-4367. [consulted: 18 of May of 2026]. Available at: https://hdl.handle.net/2445/183219