The Smart Tachograph

Today’s insurance rates are often only a rough approximation of the actual risks they insure, categorizing insurance takers into coarse classes based on long-term demographic facts such as age or address. This not only negatively affects the care with which the insured good is treated, but also often implies a significant amount of cross-financing from low-risk customers to high-risk customer. By being able to measure the risk an insured good is subjected to in real-time, insurers could offer real-time insurance rates that would both encourage safe treatment of the insured good, as well as reward low-risk customers with lower insurances rates. The video presents the Smart Tachograph, an example of such a real-time risk-measurement system in the car insurance domain. It further demonstrates vividly how a risky driving style could significantly increase an individual’s insurance rate.