A Post-Quantum Privacy-Enhanced Federated Learning Model for Driver Behavior Profiling

As vehicle systems become increasingly connected and intelligent, insurance providers are turning to machine learning techniques to personalize billing based on individual driving behavior. This shift raises important questions about how to balance predictive performance with user privacy. In this paper, we present PrivFedProfiling, a decentralized privacy-preserving learning framework designed for use-based insurance (UBI) systems. Our method leverages Federated Learning (FL) to collaboratively train behavior models across distributed driver devices without transferring raw data. To further strengthen privacy, we integrate Differential Privacy (DP) and Homomorphic Encryption (HE) within the training process, protecting sensitive patterns in shared model updates. The proposed approach uses a Multilayer Perceptron (MLP) architecture and is validated using synthetic driving behavior data generated from the SUMO simulator. It offers a realistic yet controllable environment for testing. Results indicate that our method maintains high model accuracy while ensuring strong privacy guarantees, making it suitable for real-world deployment.