The Solution incorporates client interfaces / dashboards which are provided by both the insurer and the device provider, They consists of :

i. Vehicle use behaviour effect on premium as a result of:

• Speed
• Peak Time Driving
• Distance
• Attitude

ii. Tips to improve behaviour and reduce premium

iii. Expected premium adjustment

iv. Impact of vehicle use on the safety of the:

• driver
• passengers
• other road users

An essential element of PAYD insurance is that customers must at all times have access to current, clear and understandable communication of the insured vehicle’s use and premium prospects.

Device providers should provide customers with data such as:

• The current position of the vehicle.
• Historic movement of the vehicle.
• Speed transgressions.
• Trips into “no go areas”.

Insurer should provide customers with data such as:

• The impact that the vehicle’s use has on premiums.
• How the vehicle’s use may be modified to reduce premiums.
• Impact of vehicle use on safety of the driver, passengers and other road users.

Data is communicated to customers’ PCs and / or mobile phones.

Ctrack Intelligent Insurance uses simples and easily understood images to communicate with customers:

• Traffic lights alert customers of the behavioural factors which may affect premiums.
• Premium usage is shown using the imagery of a water bowser. Each time the insured vehicle moves water is drained out of the bowser, depending on how the vehicle is driven. Driving at excessive speeds drains water faster than prudent driving. A combination of a bad driving attitude and driving during peak times has an exponential effect on the amount of drainage. When all the water is drained the premium is spent indicating need for adjustments to premiums and / or vehicle usage.

The insured vehicle to which the device is fitted.

All the movements as well as non movements of the vehicle are detected by the device and transmitted to the device provider.

All this data is then used by the Rating Engine to profile the use that is being made of the vehicle and the risks to which the insurer is exposed.

Clients

Vehicles use rating as its keystones:

The device provider’s server controls the data sent from the device in the insured vehicle via the Communication Tower.

When the vehicle is moving it transmits data to the device provider’s server at periodic intervals. The Insure Telematic Solution is based on receiving data every 5 minutes.

The device will also send a message at selected times when the vehicle is not moving.

The rating data is packaged by the device provider into a predetermined format and passed on to the Rating Engine’s Server.

It is very important to note that the Insure Telematic’s Solution does not pass on to the insurer the data received from the device provider. Thus the device provider’s data remains the property of the device provider.

The data that is passed on to the insurer is a vehicle use profile and / or an insurance premium derived from the devices provider’s data.

The Device provider’s Call Centre processes all calls pertaining the installation, working, and maintenance of the device.

The processing of device related queries is a specialised function and experience has shown it to be a function which is not adequately processed by insurer call centres.

The Rating Engine produces each insured vehicle’s use profile on a daily basis. For each 5 minutes period that a vehicle moves more than 40 essential data inputs are sent to the Rating Engine. All these inputs are used to profile the vehicle according to how, when, where and why it was used.

Vehicle data such as distance travelled, attitude of the of the driver, time of day, speed, type of road and area of travel are some of the factors used to calculate a vehicle’s use profile.

The Ctrack Intelligent Insurance Solution incorporates several standard profiles. However, the insurer may wish to add additional profiles and the Rating Engine is sufficiently flexible to accommodate such additional or bespoke profiles. An example would be that it might be important to an insurer to profile use for business or social and domestic purposes. Profiles are produced for periods ranging upwards from a day.

The Rating Engine Server controls the data received from the device provider and ensures that the data is processed and forwarded to the insurer after profiling.

The device provider provides data using a unique identifier established between it and the insurer. Thus the Rating Engine performs its profiling function without details of vehicle ownership or type. The identity of the insured person is unknown to the Rating Engine ensuring protection of both the insured customer’s and device provider’s data. After profiling, the vehicle use profile is transmitted by the Rating Engine Server to the insurer. It is important to note that device providers do not receive the vehicle use profile and that insurers do not receive the device providers’ data.

The insurer will have considerable rating expertise in determining premiums derived from factors such as age of the regular driver, where the vehicle is mostly kept and the use to which vehicle is put etc. Such rating can be defined as “derivative based rating”.

Vehicle use profiles provide profiles based on actual vehicle use as well as the locations where the vehicle is parked when not in use.

There are various methods that can be used to bridge the gap between a “derivative rating system” and a “use profile rating system”. The Ctrack Intelligent Insurance’ Solution is a flexible solution allowing each insurer to bridge the difference between rating systems in a manner most appropriate to it’s rating philosophy.

Ctrack Intelligent Insurance’ experience will also assist the insurer in bridging the difference between rating systems in the most effective and efficient manner appropriate to the insurer’s marketing strategy and rating philosophy.

The insurer will have considerable rating expertise in determining premiums derived from factors such as age of the regular driver, where the vehicle is mostly kept and the use to which vehicle is put etc. Such rating can be defined as “derivative based rating”.

Vehicle use profiles provide profiles based on actual vehicle use as well as the locations where the vehicle is parked when not in use.

There are various methods that can be used to bridge the gap between a “derivative rating system” and a “use profile rating system”. The Insure Telematics’ Solution is a flexible solution allowing each insurer to bridge the difference between rating systems in a manner most appropriate to it’s rating philosophy.

Insure Telematics’ experience will also assist the insurer in bridging the difference between rating systems in the most effective and efficient manner appropriate to the insurer’s marketing strategy and rating philosophy.

The insurer’s server controls all the insured vehicle’s and customer’s insurance data. This data will include selected data about the device providers management of the device.

The data will also include data received from Insure Telematics’ Rating Engine, namely the insured vehicle’s user profiles and / or insurance premium derived from these profiles.

The insurer’s call centre is the voice communication link between the insurer and the insured on matters pertaining to the insurance policy and not to matters concerning the management of the device.

Thus the insurer call centre will not process calls pertaining to the device installed in the insured vehicle. Calls concerning the management of the device will be processed by the device provider. An automatic call transfer to the device provider’s call centre ensures efficient customer service. Experience has taught that insurer call centres are not capable of effectively providing information pertaining to nature or functionality installed devices.

The capability of a vehicle use premium based call centre needs to be enhanced to answer calls pertaining to the vehicle’s use profile. Consequently, the insurer’s call centre system also requires enhancement to provide call centre operative access to the insured vehicle’s use dashboards as seen by the customer.

The insurer’s server controls all the insured vehicle’s and customer’s insurance data. This data will include selected data about the device provider’s management of the device. The data will also include data received from Insured Telematics’ Rating Engine, namely the insured vehicle’s user profiles and / or insurance premium derived from these profiles.

Communication between the insurer, the insured client and the device provider is crucially important to the success of customer insurance premiums derived from telematic vehicle data.

The Ctrack Intelligent Insurance Solution incorporates software which establishes the communication process between the device provider and the insurer. The software ensures that communication between the device provider and the insurer commences electronically the moment the policy is sold. As soon as the communication process is established the device provider manages the device from installation, through maintenance to de-installation. All communication relating to the device’s management is shared electronically with the insurer.

Customer communication relating to the policy is always managed by the insurer.

A cellular network is a radio network distributed over land areas called cells, each served by at least one fixed-location transceiver known as base station or communication tower. When joined together these cells provide radio coverage over a wide geographic area. This enables a device to move from area to area and to communicate with a communication tower in the network.

The communication tower transmits data from the device via a fixed line to “switch”. The switch on recognising the type of message as data switches the data to the web.

The data is then collected from the web by the device company’s server.

The Global Positioning System (GPS) is a space-based global navigation satellite system that provides location and time information in all weather and at all times anywhere on or near the Earth’s surface when and where there is an unobstructed line of sight to four or more GPS satellites.

GPS satellites broadcast signals from space, which the devices use to calculate three-dimensional location data (latitude, longitude, and altitude) plus the current time.

An important and all too often over looked component of the solution is the installation of the device. The rule is that the device should be easy and quick to install while at the same time being difficult to detect and remove by a thief. Many devices are large and obvious with complex wiring systems. The ideal device will blend in with the electric components of the vehicle and will have a two wire supply connection with auto calibration and alignment . OBDII “On-Board Diagnostic System” type dongles are not a reliable or suitable solution due to:

• ease of removal
• connector orientation inside the vehicles
• interference with the vehicle ergonomics