Usage-Based Insurance System Based on Carrier-Cloud-Client

With the increasing availability of driving operation data and vehicle information for auto insurance services, it is possible for insurance companies to provide differentiate insurance premiums and value-added services for drivers. We develop a usage based insurance system for the first time, which is comprised of carrier, cloud and client referring to the internet of thing architecture. Our innovative system is hierarchically described from low sensor level to topmost business model. Moreover, we present a dynamic insurance premium mechanism which is favorable to make insurance consumers enjoy discounts or surcharges referring to driving safety standards. It is believable that our proposed usage-based insurance is promising and sustainable owing to safe awareness enhancement for driving safety, reasonable premiums and personalized insurance services for consumers and profit improvement for insurance companies.