THAT HUNGER STRIKE LASTED 19

DAYS.

>>> WOULD YOU LET YOUR CAR

INSURANCE COMPANY GATHER DATA

WHILE YOU DRIVE.

NORTH BROOK BASED ALLSTATE IS

GRANTED TWO PATENTS THAT COULD

ALLOW THE COMPANY TO GAERM A

LOT OF INFORMATION ABOUT YOU.

THINGS LIKE WHAT YOUR HEART

RATE IS WHILE I DRIVE OR

WHETHER DISTRICTED BY SOMETHING

IN THE GAR CAR.

IT COULD POTENTIALLY KEEP AN

EYE ON CARS AROUND YOU AND BELL

ON THE STREETS.

AND THE COMPANY SAYS ANY NEW

DATA COLLECTION TECHNOLOGY

WOULD BE TO IMPROVE DRIVER

SAFETY.

BUT, SOME WORRY IT'S

UNNECESSARY ENVISION OF

PRIVACY. JOIN IS US TO TALK

ABOUT THAT CHICAGO TRIBUNE

REPORTER BECKY YEREK COVERING

THE STORY AND DONE FWRIV

INVICE-PRESIDENT OF PROPERTY

CASUALTY INSURANCE PROPERTY

CASUALTY INSURERS ASSOCIATION

OF AMERICA BASED HERE IN

CHICAGO AND HAROLD CEN TEEN ON

CHICAGO IAA COOL SCHOOL OF LAW.

ON THE PATENT ALLSTATE WAS

FWRAPTED MORE ON WHAT THE

PATENTS WOULD ALLOW ALLSTATE TO

DO.

>> WHAT'S SO INTERESTING ABOUT

THESE PATENTS IT'S REALLY JUST

A FEW THINGS.

FIRST OF ALL THEY GOT ONE IN

JUNE THAT ENVISIONED SELLING

THIS DRIVING DATA TO OTHER

COMPANIES LIKE BANKS,

MARKETERS, HEALTH INSURANCE

COMPANIES.

THEY THINK THIS DATA COULD BE

USEFUL FOR OTHER COMPANIES.

THAT'S ONE ELEMENT OF IT AND

SECOND ELEMENT OF IT THEY'RE

NOT JUST INTERESTED IN HOW YOU

DRIVE.

NOW THEY'RE TALKING ABOUT --

>> HOW FAST YOU GO.

>> HOW FAST YOU GO.

>> WHETHER YOU SGLAIK WHETHER

YOU BRAKE A LOT OF WHAT TYPE VL

DAY YOU DRIVE.

YOUR MILEAGE.

THAT IS TYPICALLY THE KIND OF

THINGS THEY'VE BEEN INTERESTED

N NOW THEY'RE TALKING ABOUT

GATHERING PHYSIOLOGICAL DATA

LIKE HAVING SENSORS ON STEERING

WHEELS THAT COULD TELL THINGS

ABOUT YOUR HEART RATE.

AND LASTLY, THE THIRD

INTERESTING PART THEY JUST GOT

A PATENT FOR IT WOULD BE

WATCHING OTHER DRIVERS AS WELL

AS STUFF NOT RELATED TOIVE

DR. ING IN THE CAR.

LIKE HOW MANY PASSENGERS ARE

THERE.

ARE THERE KIDS.

ARE YOU EATING?

ARE YOU TALKING ON THE PHONE?

AND HOW ARE PEOPLE AROUND YOU

DRIVING?

ARE THERE PEDESTRIANS?

>> DON GRIFFIN WHY WOULD

ALLSTATE BE INTERESTED IN

GETTING THIS KIND OF DATA THAT

IS NOT JUST TO DO WITH WHO IS

IN THE CAR BUT DRIVERS AROUND

THEM AND SO FORTH.

>> THERE'S A COUPLE REASONS IF

YOU THINK ABOUT T. WE ARE IN A

VERY, VERY COMPETITIVE MARKET

FOR AUTO INSURANCE.

SO COMPANIES ARE TRYING TO

FIGURE OUT HOW THEY CAN BEST

POSITION THEMSELVES AND GET A

LEG UP ON PERHAPS ANOTHER

COMPETITOR.

AND ONE OF THE WAYS TOU DO

THAT.

>> BY THE WAY YOUR ASSOCIATION

REPRESENTS INSURANCE COMPANIES

AND ALLSTATE HAPPENS NOT TO BE

A MEMBER.

>> CORRECT.

>> SO COMPANIES GATHER THIS

DATA.

THERE'S A COUPLE GOOD REASONS.

THINK WANT TO BE ABLE TO OFFER

COMPETITIVE PRODUCT.

ONE OF THE THINGS THEY CAN DO

IS ANYTHING THEY CAN FIND OUT

THAT WOULD HELP GET YOU THE

RIGHT PRICE SO AK TU AIRILY PAY

THE RISK SO YOU'RE NOT PAYING

THE RISK OF SOMEBODY ELSE AND

HOW THEY DRIVE IS GOOD

INFORMATION.

ANYTHING TO IMPROVE THE SAFETY.

IF YOU GOT THREE OR FOUR KIDS

IN THE CAR PERHAPS THEY'RE

CREATING DISTRACTION AND THAT

MAY BE SOMETHING THAT TAIDZ YOU

CAUSES YOU TO TAKE EYES OFF

FOCUS OF DRIVER.

>> I'M SURE THAT DIDN'T HAPPEN

TO A PARENT.

>> OF COURSE NOT, NOT ANY OF

US.

ANYWAY, THERE ARE REASONS TO DO

THAT.

AND THEN, WHAT YOU TRY TO DO IS

FIGURE OUT, ARE THERE BEHAVIORS

THAT YOU CAN CHANGE BY DOING

COLLECTING SOME THIS DATA.

AND WHAT WE'VE LEARNED OVER THE

YEARS IS SOME OF THE DATA

THAT'S BEEN COLLECTED FROM

PEOPLE AS THEY DRIVE.

AND WHEN THEY DRIVE.

AND HOW FAST THEY DRIVE.

IT'S ACTUALLY BEEN USED TO

IMPROVE THE DRIVER'S SAFETY.

PEOPLE HAVE ACTUALLY CHANGED

DRIVING HABITS BECAUSE THEY GET

DISCOUNTS IF THEY ACTUALLY

DRIVE BETTER AND SAFER AND THEN

IT'S ALSO A THING WITH CAR

MANUFACTURERS THEY PRIOR PUT

MORE AND MORE IN CRASH

AVOIDANCE TECHNOLOGY IN THEIR

VEHICLES.

>> LET'S SWITCH TO HAROLD CENT.

PRIVACY CONCERNS HAROLD J.

KRENT, WE'RE TALKING ABOUT NOT

JUST HOW ONE DRIVES, BRAKING,

SWERVEER, BUT PHYSIOLOGICAL

FACTORS LIKE HEAT RATE AND HOW

BLOOD PRESSURE AND THAT SORT OF

THING.

>> FIRST OF ALL, A AGREE WITH

DON THAT TECHNOLOGY CAN BE

HELPFUL IN TERMS OF INCREASING

SAFETY.

AND THAT'S REALLY WHAT ALL

GOOGLE DRIVERLESS CAR IS ALL

ABOUT AND IT'S IMPORTANT IN

TERMS OF TRYING TO PREDICATE

THE RIGHT RISK PROFILE FOR

INDIVIDUAL DRIVER.

SO FAR SO GOOD.

THE QUESTION WHAT WILL BE DONE

WITH THE DATA.

WILL IT BE SOLD AS YOU

SUGGESTED AND BECKY SUGGESTED

TO INSURANCE COMPANIES, HEALTH

INSURANCE COMPANIES OR BANKS.

AND WILL YOU GET THE

INFORMATION OF UNWITNESSING

PASSENGER ALSO INVOLVED IN THIS

DATA COMPILATION AND WHAT ABOUT

BYSTANDER ON THE STREET OR

ABOUT DRIVER IN ANOTHER CAR.

WHAT HAPPENS WITH THAT

INFORMATION.

WHO WILL BE GIVEN TO BE.

PROSPECTIVE EMPLOYERS.

LOOKING AT RISK FACTORS AND NOT

WANT TO HIRE SOMEBODY.

ALL THIS INVOLVED.

ANYBODY THAT USES PATENTS

WHETHER ALLSTATE OR SOMEONE

ELSE SHOULD COME ONE CLEAR

POLICIES ABOUT WHAT IT WILL USE

THE INFORMATION FOR.

IT'S OKAY IF IT'S FOR SAFETY

BUT YOU PACKAGE TO TO HEALTH

INSURANCE COMPANIES I THINK A

LOT OF US WOULD BALK.

>> BECK YES, I LET ME GO TO

BECKY.

DIDN'T THE ALLSTATE CEO SAY

SOMETHING ABOUT OR SUGGEST OR

IMPLY THAT SELLING THIS DATA

MIGHT BE A POSSIBILITY?

>> OH, YEAH THEY SAID THAT A

FEW MONTHS AGO HE WAS AT A

CONFERENCE AND SAYS IT'S SORT

OF THE SAME THING GOOGLE DOES.

AND SO HE FLOATED THIS A FEW

MONTHS AGO WHERE HE SAID WE

MIGHT ENVISION SELLING THIS

DRIVING DATA SOME DAY AND THEN

IN JUNE THEY RECEIVED THIS

PATENTS THAT SORT OF LAYS OUT

THE POTENTIAL OF SELLING THIS

DRIVING DATA TO DIFFERENT

INDUSTRIES.

>> SUCH AS?

>> SUCH AS HEALTH INSURANCE

COMPANIES, BANKS, MARKETING

COMPANIES, THEIR REASONING IS,

WELL, MAYBE IF SOMEBODY IS

AGGRESSIVE DRIVER THEY'LL BE

AGGRESSIVE HOW THEY HANDLE

MONEY.

>> HOW ABOUT THAT, DON GRIFFIN.

YOU HEAR CONCERNS.

THEY SEEM LEGITIMATE.

>> YES, YOU KNOW SOCIETY HAS TO

DECIDE AND COME ONE WHAT THE

BALANCE SHOULD BE BETWEEN HOW

MUCH DATA IS OUT THERE AND WHAT

CAN BE DONE WITH IT.

AND THE COMPANIES THAT ARE

INVOLVED WOULD NEED TO DISCLOSE

TO THE POLICY HOLDER OR

POTENTIAL PURCHASER OF THIS

TYPE OF PRODUCT THAT THEY'RE

ACTUALLY GOING TO BE COLLECTING

THAT DATA AND AS HAROLD TALKED

ABOUT.

>> GOOGLE DOES THAT TOO.

>> AND HOW THEY ACTUALLY --

>> SEVERAL PAGES OF FINE PRINT.

>> RIGHT.

>> AND I THINK A LOT OF PEOPLE

ARE SIGNED UP FOR GOOGLE OR G

MAIL PROBABLY DON'T READ IT.

>> NOT AS MUCH AS THEY SHOULD.

THE DISCLOSURE WOULD HAVE TO BE

HERE AND PEOPLE WOULD NEED TO

BE AWARE THIS IS WHAT THE DATA

IS USED FOR AND SELLING OF IT

TO OTHER ENTITIES THAT GOVRPD

BY SHARING THIRD PARTIES AND BY

GRIM REACH BLUELY A FEDERAL LAW

AND YOU CAN ONLY DO THAT IN

CERTAIN CIRCUMSTANCES AND IT

HAS TO BE KNOWN AHEAD OF TIME

AND FOLKS HAVE TO BE AER WHAT

OF IT AND THE OTHER PIECE IS

WHEN YOU GET TO THE PEOPLE

AROUND THE CAR, YOU KNOW, ONE

OF THE THINGS THAT WOULD BE

HELPFUL AS FAR AS SAFETY AND

THEN AGAIN YOU HAVE TO BE VERY

CLEAR ON HOW IT WOULD DIVIDE

OUT AND WHO WOULD GET DATA WIN

BUT ONE OF THE THINGS TO HELP

IMPROVE SAFETY IS TO SEE WHAT

ACTUALLY HAPPENED IN THE

ACCIDENT.

AND IF THE CAMERAS PART OF THE

CAR CAN ACTUALLY SHOW THAT AND

THAT DATA CAN BE USED WITH THE

OWNER'S PERMISSION AND PEOPLE

INVOLVED IN THE ACCIDENT THEN

THAT MIGHT GO A LOT FURTHER TO

HELPING SOLVE THE CIRCUMSTANCES

OF THE ACCIDENT AND PAYING FOR

THE CLAIM.

>> BECAUSE BECKY THE PATENT NOT

JUST PERCEIVES THE POSSIBILITY

OF SENSORS ON STEERING WHEEL

AND SO FORTH AND ALSO CAMERAS

AS WELL.

>> CAMERAS AND ALSO AUDIO.

SO IF YOU WERE HAVING A REALLY

ANIMATED DISCUSSION OR IF I

WERE PLAYING THE STEREO VERY

CLOUDY THE PATENT DOES MENTION

AUDIO.

>> WHO CAN GET ACCESS THOSE

CONVERSATIONS THAT YOU'RE

TAKING PLACE RIGHT AND THAT'S

DIFFICULTY.

WE DON'T WANT PEOPLE LISTENING

IN SAYING WHAT WERE YOU DOING

ON KHETFIELD DRIVE WHAT WERE

YOU TALKING ABOUT AND SAY TO

YOUR KIDS OR SAY TO YOUR

PARTNER OR WIFE.

LET'S -- ALLSTATE ISSUED A

STATEMENT LET'S TAKE A LOOK

WHAT THE THEY SAID.

AS PART OF ALLSTATE'S

COMMITMENT TO LEVERAGE

INNOVATIONS TO IMPROVE DRIVER

SAFETY WE FILED THIS PATENT FOR

PROSPECTIVE PATENT AWARENESS

TECHNOLOGY SA FEW YEARS AGO.

IT WOULD PROVIDE DRIVERS WITH

TRAFFIC AND EXTERNAL FACTORS TO

HELP THEM DRIVE SAVE.

HAROLD J. KRENT ALL THIS IS

VOLUNTARY.

A DRIVER WOULD HAVE TO SAY,

YES, I AGREE TO THIS.

AND EXCHANGE FOR MAYBE BETTER

RATES AND SO FORTH.

IF IT'S VOLUNTARY AND YOU'RE

CONSENTING TO THE SENSORS AND

CAMERAS AND SO FORTH WHAT'S THE

PROBLEM.

>> NOT VOLUNTARY WITH PASSENGER

AND NOT VOLUNTARY WITH

BYSTANDERS AND NOT VOLUNTARY

WITH DRIVERS OF CARS THAT

HAPPEN TO CROSS THE PATH OF THE

INSURED.

THAT'S THE THE DIFFICULTY.

RIGHT?

ONE CAN GIVEAWAY ONE'S OWN

PRIVACY WHETHER YOU GET A TEE

SHIRT AT A SPORTS FESTIVAL OR

IT'S HARD TO GIVEAWAY SOMEBODY

ELSE'S PRIVACY. THAT'S THE

DANGER INNERNT THIS PARTICULAR

PATENTS THAT THEY HAVE TO BE

CAREFUL FOR WHOEVER

OPERATIONALIZE IT'S.

>> DON GRIFFIN GIVE ME EXAMPLE

OF INCENTIVES.

SOME PROGRAMS ALREADY EXIST.

WHAT EXISTS RIGHT NOW IN TERMS

OF WHAT SLURNS COMPANIES CAN

GATHER WITH DRIVER'S CONSENT.

>> WITH DRIVER'S CONSENT

THEY'RE GATHERING USAGE BASED

DATA NOW.

>> WHAT DOES THAT MEAN.

>> WHEN YOU DRIVE, WHERE YOU

DRIVE, HOW FAST, WHAT TIME OF

DAY AND WHETHER YOU'RE

EXCEEDING THE SPEED LIMIT,

WHETHER YOU'RE BRAKING HARD OR

SWERVING AS BECKY TALKED ABOUT

AND SO THE DISCOUNTS FROM THAT

CAN GET YOU 10 TO 30% OR MORE.

>> SO THEY CAN BE SIGNIFICANT.

>> YES THEY CAN.

AND IDEA BEHIND THAT IS TO HELP

THEM GET A BETTER PICTURE AND

CHARGE YOU A BETTER RATE BISSED

ON HOW YOU DRIVE.

BECAUSE THOSE ARE INDIVIDUALS

RISK FACTORS YOU V AND SO

COMPANIES HAVE STARTED TO

TAYLOR THESE PRODUCTS AND

THAT'S WHAT WE'LL SEE MORE OF

AS WE USE DATA IN THE INDUSTRY

TO THE EXTENT WE'RE ALLOWED TO

TO AVOID PRIVACY ISSUES WE WILL

PROBABLY SEE A LOT MORE

DEVELOPMENT OF THIS KIND OF

PRODUCT THROUGHOUT THE INDUSTRY

BECAUSE AGAIN EVERYBODY IS OUT

THERE FOR COMPETING FOR THE

CUSTOMER.

>> DON GRIFFIN LET ME ASK YOU

THIS YOU CITE EXAMPLES SOMEBODY

IS DRIVING GOOD DON'T SWERVE,

BREAK BRAKE, SO FORTH RAETS GO

DOWN.

>> IS REVERSE TRUE.

>> ABSOLUTELY.

>> AND THAT'S WHY THEY TRY TO

DO.

THEY USE THAT INFORMATION TO

HELP IMPROVE THOSE DRIVERS THAT

MAY HAVE SOME ADVERSE ACTIONS

THAT THEY'VE TAKEN AND HOW THEY

DRIVE.

>> AND BECKY, MY UNDERSTANDING,

THERE'S BEEN CONCERNS ABOUT THE

DEGREE TO WHICH SOMEONE CAN

ACTUALLY GIVE CONSENT FOR THEIR

OWN PERSON AS OPPOSED TO

OTHERS.

WHAT IS THE ARGUMENT THERE IN

TERMS OF WHETHER OR NOT THESE

INCENTIVES ARE SO STRONG THAT

ONE DOESN'T REALLY HAVE

CONSENT.

YOU CAN AMPLIFY ON THAT?

>> IT MAY BE WHAT A LOT OF US

FACE WHEN WE HAVE TO SIGN

SOMETHING SAYING TO USE THIS

SERVICE YOU HAVE TO CONSENT TO

X, Y, Z.

SO REALLY IT DOES BECOME KINDS

OF COERCIVE.

AND SO I MEAN WE DON'T REALLY

KNOW.

>> HAROLD, GEOFF ME EXAMPLE OF

WORST CASE SCENARIO SAY

SOMEBODY IS GATHERING

INFORMATION ON DRIVER AND

MEASURING BLOOD PRESSURE AND

HER HEART RATE AND SO FORTH AND

CAMERAS ALL AROUND AN THAT SORT

OF THING, GIVE ME AN EXAMPLE OF

SOMETHING BAD THAT COULD HAPPEN

YOU.

>> CLEARLY KNOW WE'VE SEEN THIS

ALL AROUND SOMEBODY COULD HACK

INTO THAT DATABASE AND POST ALL

PERSONAL CHARACTERISTICS FOR

ANYBODY TO SEE AND NOBODY

WHANTS TO KNOW THEIR BLOOD

ALCOHOL LEFT OR HEART RATE OR

BLOOD PRESSURE FOR ANYBODY TO

LOOK AT.

THAT'S ONE ISSUE.

EVEN MORE IMPORTANT I THINK IS

QUESTION OF YOU DON'T WANT

PRIVATE CONVERSATIONS S OR ANY

KIND OF PRIVATE CONDUCT WITH

KIDS IN CAR OR NOT TO BE

SUBJECT TO ANY KIND OF SECOND

GETTING BY YOUR EMPLOYER OR

HEALTH INSURANCE COMPANY AND

NOT TO MENTION JUST AN

INTERESTED NEIGHBOR.

>> HOW ABOUT THE WHOLE ISSUE OF

THE CONVERSATIONS BEING

RECORDED, HOW WOULD ONE PROTECT

THAT FROM BEING ABUSED.

>> I THINK THAT'S A KEY PIECE

OF IT HOW YOU WOULD STRUCTURE

THE POLICY SO THATLE ONLY THING

THAT WOULD PROBABLY BE USED IN

THAT PARTICULAR INSTANCE WOULD

BE IF THERE WAS AN ACCIDENT

LATER.

AND SO IF YOU -- IF THERE WAS

SOMETHING GOING ON IN THE CAR

AND THAT CAUSED SOMEBODY TO

TURN THEIR HEAD PERHAPS AND

SPEAK TO A CHILD AND THAT TAKES

YOUR EYES OFF THE ROAD, THAT'S

SOMETHING THAT PROBABLY THE

INDUSTRY WOULD HOPE THAT WE

WOULD BE ABLE TO USE AT SOME

POINT.

>> HOW DO YOU MAKE THE PITCH TO

CONSUME THERZ IS AGOOD THING?

>> THE WHOLE IDEA BEHIND IS IS

TO GETS THE CONSUME ARE A

BETTER PRICE AND GET THEM TO

PAY WHAT THEY THINK THEY SHOULD

FOR THE RISK THAT THEY PRESENT

TO THE INSURANCE COMPANY.

AND NO MORE THAN THAT.

>> IS IT POSSIBLE THE ONLY

PEOPLE GOING TO VOLUNTEER FOR

THIS ARE THE LARGEST GROUP ARE

PEOPLE WHO ARE GOOD DRIVERS AND

PEOPLE WHO ARE ERRATIC DRIVERS

MAY SA NO THANK SFWLU THAT MAY

BE THE CASE.

AND THAT'S ONE OF THE THINGS.

AS YOU POINTED OUT, PEOPLE HAVE

THE CHOICE.

AND THEY HAVE THE OPPORTUNITY

TO BUY FROM A COMPANY OR NOT

DEPENDING WHERE TO BUY THIS

PARTICULAR PRODUCT BECAUSE THE

COMPANY MAY HAVE OTHER PRODUCTS

THAT THEY USE.