Highlights A sample of 8198 drivers that underwrote a PAYD policy in 2009 is analysed. Vehicle usage and driving patterns of young men and women drivers are not the same. For men, speed (number of kilometers above the limit) reduces the distance travelled to the first crash. For women, nighttime driving reduces the distance travelled to the first crash. Thanks to GPS data Usage-based insurance contributes to the maintenance of actuarial fairness.

    Abstract In this paper we employ survival analysis methods to analyse the impact of driving patterns on distance travelled before a first claim is made by young drivers underwriting a pay-as-you-drive insurance scheme. An empirical application is presented in which we analyse real data collected by a GPS system from a leading Spanish insurer. We show that men have riskier driving patterns than women and, moreover, that there are gender differences in the impact driving patterns have on the risk of being involved in an accident. The implications of these results are discussed in terms of the ‘no-gender’ discrimination regulation.


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    Title :

    Using GPS data to analyse the distance travelled to the first accident at fault in pay-as-you-drive insurance




    Publication date :

    2016-04-04


    Size :

    8 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English