Telematics and Internet of Things (IOT) have changed the way we look at insuring drivers on the road today. As a result, insurers from all over the globe are testing and deploying telematics-based insurance solutions to find a more accurate means of allocating risk and implementing customised pricing based on driver behaviours.
To-date, the Pay-As-You-Drive initiative has been successful in providing a solution to meet the needs of low mileage drivers, but AXA is continuously trying to improve and explore how we can implement the Pay-How-You-Drive approach by assessing driving profiles.
So how do we create a profile for a driver? Leveraging telematics, we use four variables - Acceleration, Cornering, Braking, and Pace – to create a weighted aggregate score that tracks and determines the way you drive.
- Acceleration - Measures hard acceleration which reduces potential reaction time and fuels efficiency.
- Cornering - Identifies the magnitude of cornering which indicates distracted or drowsy driving.
- Braking - Recognises harsh braking which can demonstrate that the driver has been following the car in front too closely or could be distracted.
- Pace - Detects the overall consistency of speed while driving, which has an impact on fuel efficiency.
The AXA Drive App for example, uses your driving score to define discounts for good behaviour as part of the user’s motor insurance policy.
While today, telematics solutions mainly make use of the way you drive, we are constantly testing new ways to better predict and prevent risky incidents for drivers using real-time information such as the external environment, driver fatigue and even your cognitive abilities.
Can assessing cognition help us build better risk profiles of drivers?
To test the impact of cognitive abilities on driving scores, AXA earlier this year partnered with Australia based startup, Roameeo. Roameeo has developed a cognitive assessment solution to assess a driver’s cognitive abilities across seven driving-related skills and provide a comprehensive report to help the driver understand his own assessment results. Studied in conjunction with the AXA Drive App, we hypothesised that higher cognitive assessment scores derived from Roameeo’s tests would result in corresponding lower risk profiles for the drivers (of having accidents as a result of driving mistakes).
For a month, we tracked 87 drivers that were assessed in seven driving related skills through simple interactive video games. The drivers were provided with a report based on their cognitive assessment, with examples of how they could improve their driving safety.
Overall, the study found that cognitive assessments taken by the drivers was unable to prove the hypothesis, and the cognitive scoring did not correlate with the risk profile scores provided by AXA Drive (as seen in the diagram below).
We believe that the overall solution will need to be enhanced and additional factors taken into account to better improve the risk profiling of drivers.
The complete results of the AXA Roameeo Cognitive Assessment Study can be viewed here.