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.