1 © 2016 Teradata

Better Driving via Machine Learning

Mo Patel

Practice Director, AI & Machine Learning

Advanced Analytics Center of Excellence

Northwestern University Transportation Center & Center for the Commercialization of Innovative Transportation Technology

Machine Learning in Transportation Workshop

October 26, 2016

2 © 2016 Teradata

• A look at the Auto Insurance Industry

• Auto Insurance Industry in transition

• Machine Learning in Auto Insurance Industry – Machine Learning for Better

Driving

– Risk Reduction via Machine Learning

– Faster Claims Processing

• Look ahead

Agenda

3 © 2016 Teradata

Recovering Economy, More Driving, More Collisions, More Fatalities

0

30

60

90

120

150

180

0

300

600

900

1200

1500

1800

2100

2400

2700

3000

3300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Miles

Billions

Jobs

Millions

Source: Labor Data (BLS), NHTSA

0

1

2

3

4

5

6

7

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: NHTSA, Insurance Information Institute

Deaths

Collision

Claims

Per 100

Insured

Vehicles

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Auto Insurance Industry costs are going up

Source: Fast Track Monitoring System Graphics: Insurance Information Institute

Bodily Injury

+9.6%

Collision

+11.1%

Personal

Injury

Protection

+18.4%

Comprehensive

+11.0%

Property

Damage

+14.7%

Rise in losses from 2014 to 2016

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Real-Time Data enabling smarter driving

Accelerometer

Bearing

Atmospheric

Pressure

Gyroscope

Engine

RPM

Speed

Accelerator

Pedal

Location

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Machine Intelligence ─ your in car driving coach

“Please

slow

down”

“Please be careful

switching lanes”

“You are approaching a

dangerous intersection”

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Deploying Real-Time Machine Prediction

Raw Data

Feature

Engineering

Model

Training

Model

Testing

Model

Packaging

Model

Deployment

Ingest Modeling Production

Model

Deployment

8 © 2016 Teradata

Providing value added Services to customers

Daily Driving Summary

Trips & Miles

Smart Driving Points

Speeding Incidents

Erratic Driving Incidents

Aggressive Driving Incidents

Hazards Avoided

Recommendations

Slow down on Main Street on your

way to Work

Avoid Michigan Ave. in the

evening

Stay in lane during rush hour traffic

on Rush Street

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Pay how you drive (PHYD) via Predictive Billing

10 © 2016 Teradata

Real-Time data and Machine intelligence in Claims resolution

Policies

Risk Profiles

Customer Records

Past Claims

Weather

Telematics

Infrastructure

Machine Learning

11 © 2016 Teradata

What is next for Machine Learning in Auto Insurance?

• More data: – Dash Cam Video Analytics

– Wearables

• Better Algorithms: – Deep Learning

– Artificial Intelligence

• In Car Applications: – Geo Fencing

– Personal Assistant

– Prescriptive Repair

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