Drivers have an IQ, EQ and now with car insurance also a DQ

Fatality crash reports have revealed that approximately 85% of fatal crashes can be attributed to human and driver error! It is fair to say that driver stupidity, recklessness, inattention and disregard for the rules of the road are causing most fatal crashes.

How does this relate to car insurance and more specifically to car insurance premiums?

Insurance is all about risk – and there are a few questions that insurers are most interested in. These would include:

–          How do we measure the risks of car insurance claims?

–          How do we measure driver behaviour?

–          How do we make car insurance affordable and align the insurance premium with the measured driver behaviour?

Human right activists love to use the catch phrase that “We are all equal”. Unfortunately this is not all true – some are blessed with higher intellectual and emotional abilities than others – and this most often transcends to the behaviour by drivers on the road and amongst other road users as well!

How do we measure these levels of intelligence?

We would like to refer briefly to the definitions of IQ and EQ:

IQ: An intelligence quotient, or IQ, is a score derived from one of several different standardized tests designed to assess intelligence. The term “IQ” comes from the German Intelligenz-Quotient.

EQ: Emotional intelligence (EI) is ability, skill or, in the case of the trait EI model, a self-perceived ability to identify, assess, and control the emotions of oneself, of others, and of groups. Various models and definitions have been proposed of which the ability and trait EI models are the most widely accepted in the scientific literature.

[Definitions from Wikipedia]

DQ and the answer to measuring driver ability

Discovery has recently launched VitalityDrive, an incentive-based programme that gives clients valuable rewards for improving their driving.

The programme uses the DQ-Track, the latest motor vehicle telematics technology from Ctrack, and proprietary algorithms to develop a scientific measure of driver behaviour – the Driver Quotient, or DQ.

What is DQ?

VitalityDrive from Discovery

A client’s DQ or Driver Quotient encapsulates the key measures of their driver intelligence. VitalityDrive will measure the Driver Quotient based on the number of DQ Points earned.

In an interview with Alec Hogg from Moneyweb, Adrian Gore provided some insights on how the Driver Quotient is to be measured. We would like to share a brief summary:

–          DQ-Track is the piece of technology that Discovery will be using.

–          It’s going to be in every single car covered by Discovery Insure under VitalityDrive.

–          DQ-Track is the technology that gives Discovery the telematics data coming out of the vehicle.

–          It’s a very sophisticated piece of technology – a three diameter accelerometer.

–          DQ –Track has GPS capability and effectively Discovery has developed algorithms about measuring how good a driver is.

–          Discovery developed this set of algorithms by working closely with Rory Byrne who is the Ferrari team designer.

–          Rory Byrne is an ex-South African who will continue to help Discovery in terms of building the algorithms.

–          Simply put the better you drive, the more DQ points you get, the more DQ points you have, the higher your DQ rate is.

–          It’s like an IQ – a driver quotient – and the better you drive  – the more DQ points you get – and the more you will get incentivised.

What is measured and how is this measured?

The basic set of the algorithms will interpret vehicle telematics data such as how people corner, how they brake, about the G-forces they expose the car to etcetera.

Discovery has partnered with telematics specialists Ctrack to benefit from the best possible vehicle telematics solutions. This partnership will provide the newest hardware, back office and online tools for driver measurement and driver ratings. Installation of these units and inspections are to be performed at Ctrack fitment centres and Ctrack Mobile Technicians nationwide.

In South Africa the Ctrack Insurance Solutions will be exclusive to the partnership with Discovery.

What is Ctrack Intelligence?

Ctrack is well known as an industry leader in driver and driving behaviour measurement in the fleet management industry. Ctrack specialises in the research, design, development, manufacturing, sales and support of technologically advanced GPS/GSM fleet management and vehicle tracking solutions.

From this expertise has also developed a solution to better assist the car insurance industry.

Ctrack Intelligent Insurance evolved out of an ambition to improve rating methodology. Research was carried out to:

•             explore using data of how, where, when and by whom insured vehicles were driven and

•             test and correlate the authenticity of the data with existing rating methodology.

Ctrack Intelligent Insurance’ solution has the pedigree of having been developed in conjunction with an insurer and tested in the competitive market of direct insurance.


You might not be the driver with the highest IQ, or your EQ might make you prone to incidents of road rage in congested traffic – but you may still be able to drive intelligently! If you manage to do so – it is only fair that you should be rewarded for this with more than only avoiding accidents. Your DQ could now reward you with a reduced car insurance premium and other potential savings as well!!

For more on vehicle and insurance telematics also view:

What is Insurance Telematics and how will it impact on car insurance?

Vehicle Insurance Telematics

Driver Intelligence to be measured by Discovery with Discovery Insure

Outsurance activates technology to reward safe driving behaviour

Pay As You Drive and Car Insurance

Vehicle Telematics, Accident Investigation and Fleet Management

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