Book Review: How Much Insurance Tracking Discounts Can Really Cost You
USAAchine learning systems have for years now beaten their human rivals in everything from Go and Jeopardy! for drug discovery and cancer detection. With all the progress the field has made, it’s no wonder people have to be wary about robots replacing them in tomorrow’s workforce. Gerd Gigerenzer argues that these concerns are misplaced in his new book. How to stay smart in a smart world, if for no other reason than its own uncertainty. AIs are machines with extraordinary abilities, but only when given enough data to work. Feed the rapidly changing precariousness of human nature into their algorithms and watch their prediction accuracy plummet – otherwise we would never need to swipe left. In the quote below, Gigerenzer discusses the hidden privacy costs of sharing your car’s telematics system with an insurance company.
Taken from How to stay smart in a smart world by Gerd Gigerenzer. Published by MIT Press. Copyright © 2021 by Gerd Gigerenzer. Copyright Registered.
When your car reports you to the police
If self-driving cars aren’t going to happen, an alternative that seems to oppose humans using AI as a support system but remaining vigilant and keeping control if it fails – is called intelligence. enhanced intelligence. It leads to partial automation, that is, for complex versions of Levels 2 or 3. However, augmented intelligence requires more than just adding useful features to the cell. your car and could lead us to another future where AI is used to assist and survey us. That possible future is driven more by insurance companies and the police than by automakers. Its seed is in telecommunications.
Stereotypically, young drivers are often reckless, overconfident and take insurance risks. Some really are, but many are not. However, insurance companies often treat them as a group and charge high premiums. Telecom insurance could change this by offering better rates to safe drivers. The idea is to calculate insurance premiums from a person’s actual driving behavior rather than from normal driving behavior. To do so, a black box connected to the insurance company is installed on the vehicle (which can use a smartphone and is cheaper but less reliable). The black box records the driver’s behavior and calculates a safety score. Figure 4.6 shows the scoring system of one of the first telecommunications insurance companies. It observes four characteristics and assigns them different weights.
Rapid acceleration or heavy braking is assigned the maximum weight, followed by driving above the allowed speed. Each driver starts with a monthly budget of 100 points for each of the four features. The “event” results in a point deduction, such as 20 points for the first rapid acceleration or when driving over the speed limit. At the end of the month, the remaining scores are weighted as shown and aggregated into a total safety score. Although telecommunications is often referred to as black box insurance, this algorithm is not at all a black box like most love algorithms. It is explained in detail on the insurance company’s website, and everyone can understand and verify the resulting score.
Personalized rates are advertised as promoting fairness. They do so by taking into account individual driving styles. But they also create new sources of discrimination when driving at night and in fined cities. For example, hospital staff may have few options to avoid working at night and in cities. As a result, some features are within the driver’s control, but not all. Interestingly, a feature within the driver’s control that is barely available in all personalized tariffs: texting while driving.
And the black box that allows fairness also enables surveillance. Consider a possible future. Why do black boxes only send speeding reports to insurance companies? A copy for the police would be extremely handy and save them a lot of work. It will make all speed traps obsolete. If you are speeding, the vehicle will print the ticket on time or, more conveniently, will automatically deduct the fine from your online account. Your relationship with your beloved car may change. There is a sliding slope between equity and comprehensive monitoring.
Do you support a new generation of cars that send traffic violations directly to the police? In a survey I conducted, one-third of adults said yes, more than among those over sixty and less among those younger than thirty. This future technology already exists, as most new cars are fitted with a black box. The data it collects does not belong to the vehicle owner and can be used in court against the driver. In Georgia, police obtained black box data without a warrant after a fatal crash, and the driver was convicted of reckless driving and speeding.
While monitoring engines vary, digital technology powers all of them. One doesn’t even need to buy telecommunications insurance. Modern cars have a built-in Internet connection and – without it being transparent in the owner’s manual – most send their car manufacturers all the data they can. collected every few minutes, including where the driver is currently, whether emergency braking has occurred, how often the driver’s seat position has been changed, which gas or battery charging stations have arrived, and how many CDs and DVDs have been inserted. Furthermore, as soon as you plug in your smartphone, the car can copy your personal information, including contacts, emails, text messages, and even photos. Automakers are pretty quiet about this activity, and when asked with whom they share this data, they usually don’t respond. That information helps figure out many other things of interest, such as how often drivers go to McDonald’s, how healthy they are, and who they sometimes visit at night. Connected cars can aid justice and improve safety but also track you. Telecom insurance represents the dual face of digital technology: surveillance for convenience.
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