A BUSINESS MODEL FOR VEHICLE INSURANCE BASED ON BLOCKCHAIN SMART-CONTRACTS

This Thesis focuses on the methodology implementation and potential impact of a Blockchain platformdesigned to be a new business model for vehicle insurance companies. This technology is a strong tool for industries’ disruption, here the platform is based on Ethereum and the focus is the Automotive Sector. Within this Industry, the proposal is to reformthe way in which vehicle insurance are calculated and marketed. Thus, by matching Blockchain with Internet of Things (IoT), the proposal is a system that measures and analyzes the way each driver behaves in traffic and thereafter automatically issues insurance contracts. In order to measure the impact of this work, some US traffic database were examined. These data relate red light violations, severe vehicle crashes and pedestrian crashes with driver’s characteristics. Among them, the target variable was the driver’s age, since it is a critical factor when regarding new technology adoption rate. Statistical analyzes showed that the proposed platform had a high impact potential for improving the driver behavior and so reducing infractions and traffic accidents. Not only benefits for society as a whole but consumers would be more satisfied paying a tailor made price for their vehicle insurance, and companies would have reduced operating costs and the possibility to take more precise risk investments by depending on each client’s driver behavior.