Google Street View image predicts car accident risk

Abstracts

EN

Road traffic injuries are a leading cause of death worldwide. Proper estimation of car accident risk is critical for the appropriate allocation of resources in healthcare, insurance, civil engineering and other industries. We show how images of houses are predictive of car accidents. We analyse 20,000 addresses of insurance company clients, collect a corresponding house image using Google Street View and annotate house features such as age, type and condition. We find that this information substantially improves car accident risk prediction compared to the state-of-the-art risk model of the insurance company and could be used for price discrimination. From this perspective, the public availability of house images raises legal and social concerns, as they can be a proxy of ethnicity, religion and other sensitive data.

Keywords

EN

Generalized Linear Model; risk modelling; insurance pricing; satellite imagery; Google Street View

• Publisher: Uniwersytet Warszawski. Wydział Nauk Ekonomicznych
• Journal: Central European Economic Journal
• Year: 2019
• Volume: 6
• Issue: 53

Dates

published

2020-04-18

Contributors

other

Kinga Kita-Wojciechowska

• Faculty of Economic Sciences University of Warsaw Poland

other

Łukasz Kidziński

• Department of Bioengineering Stanford University Stanford

Identifiers

DOI

10.2478/ceej-2019-0011