Research on Safe Driving Scoring System and Personalized Ratemaking of Vehicle Insurance based on OBD Data

Abstract

This paper was based on the latest domestic automobile insurance ratemaking model, brought drive behavior into the adjustment range of the independent underwriting coefficient (underwriting by company), explored the differential pricing problem of automobile insurance rate. The paper was based on OBD driving behavior data of vehicles, identified the key characteristics of driving behavior influencing accidents per year. In the next step, EW--AHP methods was taken to build a safe driving scoring system and according to driving safety latent variable, the score was turned into the adjustment factor of the independent underwriting coefficient (underwriting by company). After further case study, it turned out that the difference between premiums was remarkable and provided the basis to personalized Ratemaking of Vehicle Insurance.