State Farms Dangerous Intersections Initiative

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State Farms Dangerous Intersections Initiative

• John Nepomuceno, P.Eng., MBA
• International Forum on Traffic Records
• Highway Information Systems
• August 2002
• Orlando, Florida

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Outline

• Study objectives and strategies
• Data sources
• Results
• Next steps

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Causes of crashes
Road-related causes account for approximately 35
of crashes
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Under-reporting of crashes
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Minimum Reporting Thresholds
2
Injury
1
Towaway
1
Between 2000 and 3000
0
Between 1000 and 2000
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Between 750 and 1000
Minimum Reporting Thresholds
5
Between 500 and 750
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Between 250 and 500
5
Between 0 and 250
1
No reporting
Number of states (incl. D.C.)
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Dangerous 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

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State Farm Insurance

• Detailed cost information on vehicles
• Largest claims database in the country
• In 1998, our research databases were amended to
  include a location field
• Date, time and facts-of-loss fields

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Dangerous Intersections Initiative

• Sorted according to location field
• Frequency-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

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Dangerous Intersections Initiative

• Rates vs. Collision Frequency
• Intersection volume data is not consistently
  available throughout the country
• Prioritization based on rates would increase work
  at least ten-fold
• Collision rates often result in low volume roads
  being prioritized
• Collision frequency is easier to convey to public

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Dangerous Intersections Initiative

• Better business case for State Farm
• Insurance premiums are a function of frequency
  and severity of crashes

Frequency x severity policyholders x premium
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Dangerous Intersections Initiative
AR1 c1/v1 AR2 c2/v2 AR1 AR2
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Dangerous Intersections Initiative

• Identified Top 10 nationally
• Provided up to 20,000 for a study
• For Top 10 nationally, 100,000 for improvements
• 1999 - 172 locations identified
• 2001 - 224 locations identified

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Evolution 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 Safety
• Advance contact to notify affected communities

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State Farm Danger Index
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Results

• 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

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Next 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

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Final Words

• Traffic engineering can be very effective in
  reducing crashes
• There is often less data available to those who
  can make a difference
• The data that is available may be biased towards
  higher-severity crashes

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Final 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

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Contact Information

• John Nepomuceno, P.Eng., MBA
• State Farm Insurance Companies
• Bloomington, IL 61710-0001
• Tel [phone]
• John.Nepomuceno.LUJD_at_statefarm.com