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State Farm

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State Farm s Dangerous Intersections Initiative John Nepomuceno, P.Eng., MBA International Forum on Traffic Records & Highway Information Systems – PowerPoint PPT presentation

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Title: State Farm


1
State Farms Dangerous Intersections Initiative
  • John Nepomuceno, P.Eng., MBA
  • International Forum on Traffic Records
  • Highway Information Systems
  • August 2002
  • Orlando, Florida

2
Outline
  • Study objectives and strategies
  • Data sources
  • Results
  • Next steps

3
Causes of crashes
Road-related causes account for approximately 35
of crashes
4
Under-reporting of crashes
5
Minimum Reporting Thresholds
2
Injury
1
Towaway
1
Between 2000 and 3000
0
Between 1000 and 2000
18
Between 750 and 1000
Minimum Reporting Thresholds
5
Between 500 and 750
18
Between 250 and 500
5
Between 0 and 250
1
No reporting
Number of states (incl. D.C.)
6
Dangerous Intersections Initiative
  • Goal
  • To reduce the frequency and severity of crashes
    at high-crash locations and raise public
    awareness about the risks of everyday driving
  • Strategies
  • Use own claims data to identify crash-prone
    locations around the country
  • Provide funding to improve intersection safety
  • Use the popular media to raise awareness

7
State Farm Insurance
  • Detailed cost information on vehicles
  • Largest claims database in the country
  • In 1998, our research databases were amended to
    include a location field
  • Date, time and facts-of-loss fields

8
Dangerous Intersections Initiative
  • Sorted according to location field
  • Frequency-based claim frequencies factored up to
    reflect market share locally
  • Location confirmed against facts-of-loss data
  • In 1999, limited to 1 year of data 2 years in
    2001

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14
Dangerous Intersections Initiative
  • Rates vs. Collision Frequency
  • Intersection volume data is not consistently
    available throughout the country
  • Prioritization based on rates would increase work
    at least ten-fold
  • Collision rates often result in low volume roads
    being prioritized
  • Collision frequency is easier to convey to public

15
Dangerous Intersections Initiative
  • Better business case for State Farm
  • Insurance premiums are a function of frequency
    and severity of crashes

Frequency x severity policyholders x premium
16
Dangerous Intersections Initiative
AR1 c1/v1 AR2 c2/v2 AR1 gt AR2
17
Dangerous Intersections Initiative
  • Identified Top 10 nationally
  • Provided up to 20,000 for a study
  • For Top 10 nationally, 100,000 for improvements
  • 1999 - 172 locations identified
  • 2001 - 224 locations identified

18
Evolution since 1999
  • Crash index weighted score to reflect higher
    severity
  • Two years of data (1999 and 2000)
  • Assistance from the Advocates for Highway and
    Auto Safety
  • Advance contact to notify affected communities

19
State Farm Danger Index
No Injury Injury
No Property Damage 0 7
Low PD (lt1,675) 1 8
High PD (gt1,675) 6 13
20
Results
  • Communities representing 92 of the 172 locations
    identified in 1999 applied for and received
    grants
  • Received approximately grant applications
    representing 120 of the 224 intersections named
    in 2001

21
Next Steps
  • Conduct an E-B evaluation of those intersections
    that were studied and improved in the 1999
    Initiative (Q4 of 2002)
  • Support national initiatives in intersection
    safety
  • Support research initiatives in highway safety

22
Final Words
  • Traffic engineering can be very effective in
    reducing crashes
  • There is often less data available to those who
    can make a difference
  • The data that is available may be biased towards
    higher-severity crashes

23
Final Words
  • Last year, SF lost more than 5B
  • Need to do what we can to reduce the frequency
    and severity of crashes
  • Auto insurance is becoming commoditized
  • Raising rates is an unattractive alternative
  • To remain competitive, we must do more to manage
    losses
  • Traffic engineering can be very effective in
    reducing crashes

24
Contact Information
  • John Nepomuceno, P.Eng., MBA
  • State Farm Insurance Companies
  • Bloomington, IL 61710-0001
  • Tel (309) 763-5706
  • John.Nepomuceno.LUJD_at_statefarm.com
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