A comprehensive teen safe-driving program should benefit teens, parents, and insurers. It can use mobile apps and telematics devices to monitor teen driving behavior, provide real-time alerts to parents if teens exceed speed limits or drive outside set areas, and give insurers meaningful data to reduce losses through predictive analytics. Cognizant's GeoLocus solution provides an integrated platform insurers can use to build such a program and create a win-win-win for all stakeholders through safer driving and lower insurance costs.

1. Developing a Comprehensive
Safe-Driving Program for Teens
To create a “win-win-win” proposition for insurers, teens and their parents, the industry needs a technology-driven, safety-focused solution that addresses the requirements of all parties, monitors teen driving and reduces losses — in real time.
Executive Summary
Teen driving is a major concern for both families and the insurance industry, and the catalyst behind numerous awareness programs and corrective steps. While it is encouraging to know that since 2005, deaths from automobile accidents involving teens have dropped 47% (from 5,889 to 3,150 in 2011),1 errors traced to teenage drivers were identified as the cause of 75%-plus of the 3,150 deaths reported in 2011 — the last year reliable data was available. This is a troubling statistic that calls for the development of a more comprehensive solution to help safeguard young drivers and their passengers.
With the evolution of the SMAC StackTM (social, mobile, analytics and cloud), insurers have the opportunity and the ability to devise a more compelling solution focused on safe driving for teens. In this paper, we examine the needs of teen drivers, their parents and their insurers — those who have the most to gain from a value-centered and highly effective safe-driving program.
We will also detail a SMAC-based solution tailored to this group of stakeholders. Key elements of the solution include:
•
A smart mobile app that appeals to teens; provides driver scores that can be compared with those of peers; monitors driving; and offers safe-driving tips for young people.
•
Software that sends real-time alerts to parents concerning their teen’s faulty driving
or breach of any governing rules (speeding, driving outside pre-defined geographic areas and roads, etc.).
•
Capabilities that help insurers reduce losses by utilizing meaningful data from telematics devices across networks.
We will also introduce GeoLocus, Cognizant’s advanced telematics solution, that insurers can use to build an all-inclusive safe-driving program for young people and their families.
• Cognizant 20-20 Insights
cognizant 20-20 insights | september 2014

2. cognizant 20-20 insights 2
The Need for Teen Safety
Sounding the Alarm
Young men and women (ages 16 through 19) con-stitute
one in 20 motorists; yet they cause one
in seven vehicle accidents. These statistics under-score
the importance of designing safe-driving
programs tailored to teens. Additional research
reinforces this critical need:
• Motor vehicle crashes are the leading cause
of death for U.S. teens; in 2010, seven teens
ages 16 to 19 died every day from motor vehicle
injuries.2
• Per mile driven, teen drivers are three times
more likely than drivers 20 and older to be
involved in a fatal crash.3
• In 2010, 22% of drivers between 15 and 20
years old who were involved in fatal motor
vehicle crashes were drinking.4
• In 2011, only 54% of high-school students
reported that they always wear seat belts when
riding with someone else.4
• More than 1,000 young drivers lose their lives
each year in vehicle crashes because of an
impaired driver (i.e., either from their own
driving or someone else’s).5
• Teens are involved in vehicle accidents
primarily because they are inexperienced — not
necessarily because they take more risks than
older drivers.
Leading Causes of Teen-Driver Accidents
The findings we have cited demonstrate the mag-nitude
of the problem: The majority of teens’ lives
are at risk due to their driving behavior. This is
especially true when it comes to newly licensed
drivers, teens driving with teen passengers,
and male teens (accident rates are almost double
those of female teens) who are more prone to
risk-taking. Year over year, numbers show that
teen safety is a clear and serious societal con-cern.
Research confirms that the leading cause of
accidents involving young drivers can be traced
to one or a combination of the following factors:
• Lack of awareness of the consequences of risky
behavior.
• Inexperience with the complexities of driving.
• Peers in the vehicle with the teen driver.
• Distraction caused by cell phones.
• Viewing driving as a social activity.
• Impaired driving due to road conditions,
including driving at night.
• Reckless driving, including speeding.
• Driving under the influence of alcohol or other
drugs.
T he Ineffectiveness of Existing Programs
While there are many methods and programs
for improving teens’ driving behavior, most have
proven ineffective. The reasons?
Most involve one-time/shorter periods of train-ing
— either before a license is granted or after
a driving incident occurs. Also, teens’ participa-tion
in this type of program is focused on granting
them a driver’s license, not at motivating them to
become and remain a safe driver.
Moreover, the effectiveness and reach of a pro-gram
depends on the stringency and application
of specific laws in the area where incidents take
place and where the teen lives.
Most teens tend to drive older
vehicles, which lack sophisti-cated
safety features. And last,
but not least, young peoples’
decision-making capabilities
do not fully develop until they
reach their mid-twenties.
These facts send a clear mes-sage
that new approaches and
techniques are required to facilitate safer teen
driving. These should include:
• A broader view, from multiple dimensions (not
just teens alone).
• Advanced technology to support/extend safety
coverage.
• Provisions for continually monitoring the
success of the solution.
• The use of psychological techniques to help
improve the effectiveness of the program.
Teens are well
aware of the risks
and consequences
of unsafe driving.
However, they
tend to overlook
the consequences.

3. cognizant 20-20 insights 3
A Better Approach to Teen
Safety Programs
Ideally, a successful safety program for teen
driving should motivate teens to participate;
be sensitive to parents’/guardians’ needs; and
apply precise data-collection tools and deep-dive
analytics for insurers to prevent losses and
achieve higher profit margins.
Enabling Teen Participation
Studies have revealed that simple peer pressure
can encourage teens to develop risky driving
habits. Furthermore, research shows that the
presence of other teens in a car being driven
by a teen significantly increases the chances of
a motor-vehicle accident — whether or not the
passengers are explicitly urging the driver to
make unsafe driving decisions/traffic maneuvers.
Additional findings confirm that a teen’s abil-ity
to react to a situation may be lacking when
compared to adult drivers. Teens are well aware
of the risks and consequences of unsafe driving.
However, they tend to overlook the consequences.
Many existing programs provide teens with infor-mation
and instructions about safe driving, but
fall short when it comes to addressing the under-lying
attitudes that influence how they drive.
Moreover, many programs do not offer a way to
gauge teen driving habits. A comprehensive pro-gram
should:
• Encourage teens to enroll.
• Sustain continuous adoption.
• Support/reward safe driving.
• Measure driving behavior.
For teens, social factors — from
peer pressure to showing off
behind the wheel, to racing
and speeding — are major con-tributors
to unsafe driving. We
believe that employing social
media to encourage safe driv-ing
can be a more familiar
and acceptable way to reach
out to teen drivers.
Also, teens’ use of smartphones
is on the rise; statistics suggest
that about 70% of individuals
between the ages of 16 and 19
use these devices,6 which have become an indis-pensable
part of their day-to-day lives.
Keeping this in mind, smart-phones
are ideal for helping
teens adopt and stick with a
driving safety program.
Complementing the pro-gram
with gamification
techniques that motivate
teens to win can keep them
interested and engaged in
learning safe driving habits.
A leaderboard that tracks
individuals’ driving skills is
a good way to inspire young
drivers to do their best.
In our view, a smart mobile app that appeals to
teens, provides driver scores, compares driving
scores with those of other participating teens,
gives safe-driving tips and provides real-time
alerts during dangerous driving offers a compel-ling
proposition.
Involving Parents
Parents are naturally concerned when their teen
is behind the wheel of a vehicle. They want to
know where they are and how they are driving.
Nonetheless, parents can be a distraction. In fact,
recent research findings confirm that approxi-mately
53% of teens who said they spoke on the
phone when behind the wheel were actually com-municating
with a parent; 46% said they typically
spoke with a friend.7
A good driver-safety program for teens should
provide parents with:
• Ubiquitous access to information.
• Boundaries and limits to govern teen driving.
• Real-time monitoring while the teen is behind
the wheel.
With the advent of SMAC technology, these three
objectives can be met — all via a device with a
smart app installed in the car or carried by the
individual. The device transmits real-time infor-mation
about the driver’s location, the speed at
which they are driving and other vital information
related to their behavior behind the wheel. Big-data
analytics tools, such as those from Espertech,
a provider of complex event processing (CEP) and
analysis, can process this information in real time
and disseminate it to relevant stakeholders.
Working together, these technologies can create
a comprehensive monitoring mechanism that
checks how a teen is driving at any given time
or place. A parent or other designated party can
A smart mobile app
that appeals to
teens, provides driver
scores, compares
driving scores
with those of other
participating teens,
gives safe-driving tips
and provides real-time
alerts offers a
compelling proposition.
A solution that
informs a parent
about how their teen
is driving and sends
alerts if they are
driving recklessly
and/or breaking
rules can offer peace
of mind and keep
their child out of
harm’s way.

4. cognizant 20-20 insights 4
set up a “geo fence” and specify the areas in
which their teen is allowed to drive. They can also
establish speed limits. Once this configuration is
completed, the data coming from the teen’s car or
mobile device can be monitored and parents noti-fied
of nonconformance. All in real time.
For instance, assume that a mother has set up a
geo fence that limits her son’s driving to a 15-mile
radius around their home. If her son drives beyond
that area, she will immediately receive a text mes-sage
or e-mail notification.
A solution that informs a parent how their teen is
driving and sends alerts if they are driving poorly
and/or breaking rules can offer peace of mind and
help keep their child out of harm’s way.
Supporting the Insurer
Apart from parents and teens, teen safety is a
major concern for states, many of which have had
success with graduate driving-license programs
(GDLs). Numerous non-profit organizations, such
as Brakes for Brett, Lives Interrupted and Drivers
Edge have also taken up the cause, as have auto-motive
manufacturers and insurers.
Insurers stand to benefit
by offering teen safety pro-grams
that can:
• Prevent and reduce loss.
• Corroborate circumstan-tial
data.
• Leverage telematics data
for predictive analytics.
• Improve customer satis-faction.
Such a program should be
end-to-end, providing the
insurer with the amount
and type of data that can be
corroborated for the actuarial process, pricing
and claims processing. The program must also
satisfy customers and garner their loyalty, which
can translate into higher profit margins.
The data it collects will be the biggest asset for
the insurance company. It provides the optics to
prevent loss, predict loss frequency, identify risky
driving behavior, and segment dangerous driving
zones. Figure 1 below shows how telematics and
big data can help insurers prevent losses.
The data collected
will be the biggest
asset for the
insurance company.
It provides the optics
to prevent loss,
predict loss frequency,
identify riskier
driving behavior, and
segment dangerous
driving zones.
How Telematics Data Can Enhance the Bottom Line
• Cameras
• Satellite Data
• Weather Report
• Traffic Patterns
• Biometric Sensors
• Internal Data
• Telematics
Mobile Apps
• Telematics
Devices in Car
• Reward for
Preemptive Action
• Satisfied Customer
PREVENT EVENTS
BIG !
AGGREGATE
DATA
$
Telematics
Internal,
External Big
Data
Analytics Cloud
Personalized
Policyholder
Services
Lower Losses
Incurred
(Predict & Prevent)
Figure 1

5. cognizant 20-20 insights 5
A Teen Safety Program
That Benefits All
A successful teen-safety insurance program
should be viewed as a winning proposition by
teens, their parents and insurers.
Insurance is meant to indemnify, or compensate,
for the financial loss of the insured. On the other
hand, insurance means business to carriers; they
must earn a profit to sustain and grow their com-pany.
In personal insurance lines, teen driving is
inevitable. At the same time, statistics tell us that
teens are very vulnerable to vehicle crashes, and
are considered immature drivers. It is a real chal-lenge
for the insurer to reduce and prevent loss
and still make a profit.
In general, there are many ways to reduce or pre-vent
the risks posed by teen driving. Introducing
safety programs, offering discounts for imple-menting
risk-control programs and stipulating
conditions during the issuance of a policy are
among them. However, offering a teen-safety
program as an addendum to a carrier’s personal
insurance policy is one of the best ways to reduce/
prevent loss.
To do this, carriers should offer parents and
teens a solution that helps them set the driving
agreement, make teen enrollment provisions and
enable monitoring of teen driving behavior by
parents. As a catalyst to gradually improve teen
driving behavior, the carrier can also monitor
teen driving, provide unbiased feedback to teens
and their parents, and reward above-average
driver performance.
Figure 2 illustrates the “win-win-win” value prop-osition
for parents, teens and insurers.
PARENT TEEN
Enrolls teen.
Sets up geofence
& speed limits for
safe driving.
Creates
notification rules.
Views the portal,
compares driving
behavior.
Is encouraged to
use the mobile app.
Benefits from
real-time alerts and
driving tips.
Strives to be
on top of
leaderboard.
Earns badges
& redeems rewards
for safe driving.
Provides teen with
safety portal
& mobile apps.
Collects driving
behavior data.
id t ith
Launches teen
safety program.
INSURER
Benefits from
safe driving &
reduced losses.
Figure 2
A Win-Win-Win Proposition for Insurers, Parents and Teens

6. cognizant 20-20 insights 6
The Cognizant Approach
Cognizant’s GeoLocus is a cost-effective, highly
scalable hosted telematics solution designed to
help insurers provide more value and increase their
ROI. This all-in-one system encompasses devices,
software, data management, analytics, portals
and mobile apps (see Figure 3). Furthermore,
GeoLocus covers the entire telematics spectrum,
including telemetry data collection; a machine-to-machine
(M2M) gateway; a telematics platform,
and a sophisticated event-processing engine that
provides real-time analytics. These features can
be leveraged to build specific solutions in areas
such as teen safety or user-based insurance (UBI)
programs for insurers and the insured.
The GeoLocus mobile app for data collection,
along with the insurer portal, complement a teen
safety program with capabilities that include:
• Out-of-the box integration with core insurance
systems (i.e., ACORD-based message and data
models, and interfaces to other COTs products).
• Comprehensive features for addressing end-to-
end needs, starting with data collection
through analytics.
• Smartphone apps that provide a cost-effective
option for delivering value-added services such
as teen-safety solutions.
• A scalable architecture
that meets time-to-market
challenges; for
example, telematics initia-tives
like teen safety can
be launched within six
months.
Looking Forward
Safe driving reduces the pos-sibility
of accidents — thereby
reducing the number of
injuries and losses they
inflict. This is especially rel-evant
when it comes to teen drivers — making
it prudent for an insurance company to support
a highly effective, technology-supported teen-safety
program.
Today, using disruptive, market-changing tech-nologies
such as telematics, mobility, big-data
analytics and cloud, insurers are better posi-tioned
to offer all-inclusive programs that help
predict and prevent teen-related accidents.
By leveraging the SMAC Stack in conjunction with
a knowledgeable telematics consulting partner
such as Cognizant, insurers can devise a scal-able
and flexible teen safety program designed
to prevent accidents, save lives and strengthen
their position in the marketplace.
* We have partnerships to provide In-Car Device options.
Figure 3
GeoLocus At a Glance
GeoLocus covers the
entire telematics
spectrum, including
telemetry data
collection; a machine-to-
machine (M2M)
gateway; a telematics
platform; and a
sophisticated event-processing
engine.
INSURER’S CORE APPLICATIONS
Telematics UW Inputs Policy Data
BIG DATA &
TELEMATICS DATA
• Complex Events Processing
for Real-Time Alerts
• Business Rules & Services
for Portals
• Driver Risk Score
• Driving Behavior
• Teen Safety Features
(GeoFence, Leaderboard… )
DRIVER PORTAL
UNDERWRITING SYSTEM POLICY ADMIN SYSTEM CLAIMS SYSTEM
Telemetry Data Collection
GeoLocus Smartphone App
OR In-Car Device*
• Insights & Analytics
• Vehicle Monitoring
INSURER PORTAL
GEOLOCUS
M2M Communication Gateway

7. cognizant 20-20 insights 7
References
• http://www.nielsen.com/content/dam/corporate/uk/en/documents/Mobile-Consumer-Report-2013.
pdf
• http://www.usatoday.com/story/news/nation/2014/08/08/distracted-driving-parents-phones/
13740087/
• https://www.health.ny.gov/prevention/injury_prevention/children/fact_sheets/teens_15-19_years/
teen_drivers_passenger_safety_15-19_years.htm
• http://teendriving.statefarm.com/system/article_downloads/2013_miles_to_go_report.pdf
• http://www.allstatefoundation.org/sites/all/themes/allstate2/pdf/chronic.pdf
• www.nhtsa.gov/staticfiles/nti/pdf/811434.pdf
Footnotes
1 Miles to Go – A national teen driver safety report. http://teendriving.statefarm.com/system/article_down-loads/
2013_miles_to_go_report.pdf
2 Centers for Disease Control and Prevention. Web-based Injury Statistics Query and Reporting System
(WISQARS. 2012. National Center for Injury Prevention and Control, Centers for Disease Control and
Prevention (producer). [Cited Sept. 28, 2012.].
3 Insurance Institute for Highway Safety (IIHS). Fatality Facts: Teenagers 2010. Arlington (VA): The Institute.
2012. [cited Sept. 28, 2012]. http://www.iihs.org/research/fatality.aspx?topicName=Teenagers&year=2010
4 National Highway Traffic Safety Administration (NHTSA), Dept. of Transportation (US). Traffic Safety Facts
2010: Young Drivers. Washington, D.C.: NHTSA; May, 2012 [cited 2012 Sept. 28].
5 Dept. of Transportation (U.S.), National Highway Traffic Safety Administration (NHTSA). Traffic Safety
Facts 2010: Alcohol-Impaired Driving. Washington (DC): NHTSA; 2012 [cited 2012 Sept. 28]. Available at
URL: http://www-nrd.nhtsa.dot.gov/Pubs/811606.PDF
6 The Mobile Consumer. http://www.nielsen.com/content/dam/corporate/uk/en/documents/Mobile-
Consumer-Report-2013.pdf
7 Parents Drive Kids to Distraction. http://www.usatoday.com/story/news/nation/2014/08/08/distracted-driving-
parents-phones/13740087/
About the Authors
Arul Aaron Rajamony is an Associate Director of Projects within Cognizant’s BusinessCloudTM Insurance
Solutions team. He leads the product development team for insurance telematics and P&C claims. Arul
has nearly 15 years of experience in application development, design, architecture and consulting. He
has focused on insurance product development for the past three years. In that time, he and his team
have built a comprehensive claims analytics platform, an insurance telematics platform and a claims
adjuster platform. Arul received his bachelor’s degree in Electrical & Electronics Engineering (B.E. EEE)
from PSG College of Technology, Coimbatore, India and his master’s degree in e-Business (M.S. e-Biz) from
Birla Institute of Technology, Pilani, India. He can be reached at Arulaaron.Rajamony@cognizant.com.
Murali Kandan is a Manager of Projects within Cognizant’s BusinessCloudTM Insurance Solutions team,
where he is responsible for product development in insurance telematics and P&C claims. He focuses
on product roadmaps and release management and leads the mobile development team. Murali has
14 years of experience in application development, with a strong background in various development
methodologies – waterfall, IIDM, Scrum Agile and product development. Murali received his Bachelor of
Engineering (BE), Mechanical Engineering degree from SASTRA University, Thanjavur, India. He can be
reached at Murali.Kandan@cognizant.com.

8. About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 75 development and delivery centers worldwide and approximately 187,400 employees as of June 30, 2014, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
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