Driving Risk Evaluation Based on Telematics Data

Telematics car driving data describes drivers' driving characteristics. This paper studies the predictive power of telematics data for claims frequency prediction. We first extract covariates from telematics car driving data using K-mediods clustering and principal components analysis. These telematics covariates are then used as explanatory variables for claims frequency modeling, in which we analyze their predictive power. Moreover, we use these telematics covariates to challenge the classical covariates usually used.