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IJSTR >> Volume 6 - Issue 12, December 2017 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

An Auto Telematics System For Insurance Premium Rating & Pricing.

[Full Text]



Irode Philip Luvuga, Elisha O. Abade, Andrew M. Kahonge



Dynamic Traction Control, Global System for Mobile Communication, Pay-As-You- Drive (PAYD), Pay –How- You Drive (PHYD), Telematics.



Insurance telematics is a new technology that has been poised to transform and change the way we buy and underwrite insurance by 2030. Insurance Premium Rate is a major variable that determines if a client will buy or take up a policy cover or not. With the current stiff competition being felt in the Industry, the local insurance industry continues to suffer big losses due to unhealthy business practice of competitor undercutting among the insurers to attract more clients but exposing the underwriting companies to potential high risks. This, in most cases means that the product is totally underpriced to the extent that it would be uneconomical and unsustainable in the long run for the insurance firms. This research outlines a technology defined model that should be used to determine the ideal premium rate payable in the Motor Insurance industry, taking into account all the variables and the risk exposure of the policy holder. The system model is able to determine the insurable risk based on the drivers attributes, and profile, location of the vehicle in relation to risk geo-locations map, monitoring the driving parameters of the vehicle by the driver, and the driving style. This enable the insurance company determines costs associated with the risk cover based on factual facts which are scientifically determined by the real risks.



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