Rider Score Discounts

In Phase 2, Levy Cover integrates with Levy Rider Score (project #05) so that safe riders pay less for coverage and unsafe riders pay standard rates. The integration is one-directional - Rider Score reads into the insurance quote, but the insurance system never writes back to Rider Score.

What changes for the rider

At unlock, the quote flow checks the rider's current Rider Score and applies a discount table before showing the opt-in card:

Discounts are illustrative - the actual percentages are carrier-tuned and may vary by jurisdiction. The rider sees the discounted price on the opt-in card with a small "Safe Rider Discount" label.

Auto-include recommendation

For Platinum and Gold riders, the opt-in card defaults to "Add coverage" preselected, with a one-tap path to decline. This is not forced enrollment - the rider can still decline. It is a UX hint that says "you've been a safe rider, here's coverage at a discount, just tap through."

The rationale: high-Rider-Score riders are statistically less likely to file claims. Encouraging opt-in for this segment grows the premium pool without growing the claim pool, which improves loss ratio and unlocks lower prices over time.

How the integration works

src/lib/insurance/rider-score.ts is a thin client that:

1. Looks up the rider's current rolling Rider Score from the rider_scores table at quote time.
2. Maps the score to a discount band.
3. Returns the discount factor to the quote service, which applies it before forwarding to the carrier (or after the carrier returns its base price, depending on whether the carrier supports per-rider discount inputs).

The integration is a soft dependency on project #05. If Rider Score is not enabled on the subaccount, the discount table returns 0% and standard pricing applies.

What the carrier sees

The carrier sees the post-discount premium on the binding. Levy absorbs the discount out of its commission - the carrier's net premium does not change. This keeps the carrier's underwriting model clean and avoids regulatory questions about per-rider price discrimination at the carrier level.

The economic effect on Levy: a 25% discount on Standard ($1.00 -> $0.75) reduces Levy's gross commission on that ride, but the higher opt-in rate from Platinum riders more than makes up for it in aggregate.

What gets recorded

Each binding records:

• discount_applied - the percentage discount, if any.
• rider_score_at_binding - the rider's score at the moment of quote.
• discount_reason - "rider_score_platinum", "rider_score_gold", etc.

These fields make it possible to A/B the discount table over time and measure conversion lift per band.

Operator visibility

Operators see the discount in two places:

1. Per-ride - the ride detail shows the original premium, the discount, and the final charge.
2. Loss-ratio report - the report breaks out claims by Rider Score band, so operators can confirm that high-score riders actually generate lower loss ratios in practice.

If the assumption (safer riders = fewer claims) is not borne out for a given subaccount, the discount table can be retuned per subaccount. This is rare; the population-level pattern is fairly robust.

What it does not do

• It does not penalize at-risk riders with surcharges on Levy Cover. Premium pricing surcharges for risky riders go through a separate Phase 2 mechanism on the base ride fare (see Rider Score's intervention ladder), not through insurance.
• It does not auto-include coverage for safe riders without their consent. Even at Platinum, the rider taps to confirm.
• It does not feed insurance claim history back into Rider Score. Claim filing is private to the carrier-Levy relationship; Rider Score is computed from ride telemetry and violations only.
• It does not share scores across subaccounts. A rider's Platinum score on Operator A is invisible to Operator B for both ride pricing and insurance discount purposes.

How Rider Score and Levy Cover reinforce each other

The two systems share a thesis: safer riders should be rewarded, unsafe riders should bear more of the risk. Rider Score does this on the base ride fare; Levy Cover does it on the optional insurance layer.

For an operator with both enabled, the combined effect is:

• Safe riders get small fare discounts (Rider Score) and small premium discounts (Levy Cover). High retention.
• Average riders pay standard. Normal experience.
• At-risk riders pay slightly more on the base fare (Rider Score uplift) and standard premium on Levy Cover. Some self-select out of risky rides.

The end state is a fleet whose pricing reflects rider behavior, not just ride distance.

Privacy

Rider Score is rider-visible. Riders can see their own score, the breakdown, and the weights. The same transparency applies to the Levy Cover discount - the opt-in card shows "Safe Rider Discount applied" and links to a help page explaining how it was earned.

There is no hidden scoring. There is no insurance-specific score the rider cannot see.

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