PRICING AND UNDERWRITING
How are InsurTechs , AI and Big Data changing the insurance industry ?
PRICING AND UNDERWRITING
The ability to accurately assess risk and price policies accordingly has been the central point of value creation for the insurance industry for centuries . By giving insurers access to larger data sets , and more detailed information about individual customers , Big Data is allowing these companies access to more granular datasets , which enable them to offer policies that more closely reflect the risk posed by an individual , rather than the demographic box they belong to .
However , this doesn ’ t mean that these older analytical strategies are being discarded . According to a report by the European Insurance and Occupational Pensions Authority ( EIOPA ), “ traditional data sources such as demographic data or exposure data are increasingly combined ( not replaced ) with new sources like online media data or telematics data , providing greater granularity and frequency of information about consumer ’ s characteristics , behaviour and lifestyles .” The result is a new generation of companies that are
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How are InsurTechs , AI and Big Data changing the insurance industry ?
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