State Farm’s Dangerous Intersections Initiative John Nepomuceno, P.Eng., MBA International Forum...

State Farm’s Dangerous Intersections InitiativeState Farm’s Dangerous Intersections Initiative

John Nepomuceno, P.Eng., MBAInternational Forum on Traffic Records &

Highway Information Systems

August 2002

Orlando, Florida

John Nepomuceno, P.Eng., MBAInternational Forum on Traffic Records &

Highway Information Systems

August 2002

Orlando, Florida

28th International Forum on Traffic Records & Highway Information Systems

OutlineOutline

Study objectives and strategiesData sourcesResultsNext steps

Study objectives and strategiesData sourcesResultsNext steps


Causes of crashesCauses of crashes

Driver57%

Road3%

Vehicle2%

27%

3%

2%6%

Road-related causes account for approximately 35% of

crashes

Road-related causes account for approximately 35% of

crashes


Under-reporting of crashesUnder-reporting of crashes

IncreasingIncreasing severityseverity

Eng

inee

ring

Eng

inee

ring

Enf

orce

men

tE

nfor

cem

ent

Fre

quen

cy

Rear-end PDO crash during

rush hour

Fatal-DUI, single-vehicle run-off road

crash

Reporting threshold


Minimum Reporting ThresholdsMinimum Reporting Thresholds

1

5

18

5

18

0

1

1

2

No reporting

Between $0 and $250

Between $250 and $500





Towaway

Injury

Min

imu

m R

ep

ort

ing

Th

res

ho

lds

Number of states (incl. D.C.)


Dangerous Intersections InitiativeDangerous 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

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


State Farm InsuranceState Farm Insurance

Detailed cost information on vehiclesLargest claims database in the country In 1998, our research databases were

amended to include a location field Date, time and “facts-of-loss” fields

Detailed cost information on vehiclesLargest claims database in the country In 1998, our research databases were

amended to include a location field Date, time and “facts-of-loss” fields



Sorted according to location fieldFrequency-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

Sorted according to location fieldFrequency-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



Rates vs. Collision FrequencyIntersection volume data is not consistently

available throughout the countryPrioritization based on rates would

increase work at least ten-foldCollision rates often result in low volume

roads being prioritizedCollision frequency is easier to convey to

public

Rates vs. Collision FrequencyIntersection volume data is not consistently

available throughout the countryPrioritization based on rates would

increase work at least ten-foldCollision rates often result in low volume

roads being prioritizedCollision frequency is easier to convey to

public



Better business case for State Farm Insurance premiums are a function of

frequency and severity of crashes

Better business case for State Farm Insurance premiums are a function of

frequency and severity of crashes

Frequency x severity = # policyholders x premiumFrequency x severity = # policyholders x premium


Dangerous Intersections InitiativeDangerous Intersections InitiativeC

rash

es

Volume

c1

v1

c2

v2

AR1 = c1/v1

AR2 = c2/v2

AR1 > AR2



Identified Top 10 nationallyProvided up to $20,000 for a studyFor Top 10 nationally, $100,000 for

improvements1999 - 172 locations identified2001 - 224 locations identified

Identified Top 10 nationallyProvided up to $20,000 for a studyFor Top 10 nationally, $100,000 for

improvements1999 - 172 locations identified2001 - 224 locations identified


Evolution since 1999Evolution 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 SafetyAdvance contact to notify affected

communities

Crash index – weighted score to reflect higher severity

Two years of data (1999 and 2000)Assistance from the Advocates for

Highway and Auto SafetyAdvance contact to notify affected

communities


State Farm Danger IndexState Farm Danger Index

No Injury Injury

No Property Damage 0 7

Low PD (<$1,675) 1 8

High PD

(>$1,675)6 13


ResultsResults

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

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


Next StepsNext 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

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


Final WordsFinal 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

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


Contact InformationContact Information

John Nepomuceno, P.Eng., MBA

State Farm Insurance Companies

Bloomington, IL 61710-0001

Tel: (309) 763-5706

[email protected]

John Nepomuceno, P.Eng., MBA

State Farm Insurance Companies

Bloomington, IL 61710-0001

Tel: (309) 763-5706

[email protected]

State Farm’s Dangerous Intersections Initiative John Nepomuceno, P.Eng., MBA International Forum...

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