The Smart Tachograph 

Vlad Coroama, Marc Langheinrich 

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.