Pay-As-You-Drive Pricing and Insurance Regulatory Objectives

1 Voluntary road pricing

In voluntary programs that encourage socially responsible (“safe”, “green”, or whatever) driving, it is possible to implement pricing schemes that more closely reflect the variation of the social marginal cost of driving than can be made with regular (more uniform) taxes and charges. This paper discusses motives for such programs and presents three examples: pay-as-you-drive car insurance, “eco...

Financing Long-term Care: Some Ideas From Switzerland; Comment on “Financing Long-term Care: Lessons From Japan”

Ikegami reviews the implementation of mandatory long-term care insurance systems in Germany and Japan, which are organized as pay-as-you-go systems. I propose to go one step further and implement a multi-pillar, mandatory and voluntary long-term care financing system, which combines pay-as-you-go with capital-funded elements. The proposal is based on the observation tha...

Evaluation and aggregation of pay-as-you-drive insurance rate factors: A classification analysis approach

Automobile Externalities and Policies

This paper reviews theoretical and empirical literature on the measurement of the major automobile externalities, namely local pollution, global pollution, oil dependence, traffic congestion and traffic accidents. It then dicusses the rationale for traditional policies to address these externalities, including fuel taxes, fuel economy standards, emissions standards and related policies. Finally...

Data Acquisition, Analysis and Transmission Platform for a Pay-As-You-Drive System

This paper presents a platform used to acquire, analyse and transmit data from a vehicle to a Control Centre as part of a Pay-As-You-Drive system. The aim is to monitor vehicle usage (how much, when, where and how) and, based on this information, assess the associated risk and set an appropriate insurance premium. To determine vehicle usage, the system analyses the driver's respect for speed li...