Three types of metrics in this one: 1. Metrics that are only indirectly correlated with insureds of lower risk (credit-based insurance score) 2. Metrics that the lower risk of insureds yield (claims history) 3. Metrics that helps insureds actively reduce risk (devices warning of potential hazards) With the potential of using the devices (in #3) to also score the risk when the policy is coming up for renewal (#2). Not to mention the folks who refuse to share data may be correlated with higher risks (that's #1). Insurance is a complex game... Credit scores in personal auto insurance pricing have been standard practice for several years. While this is due to "keeping things fair," can connected home scores help extend coverage to places where floods and wildfires are more prevalent? #Insurance #InsurTech
A lot of new homes want to be connected, but that’s a belt and suspenders customer unless you find something interesting about the occupants beyond home location.
ManyMangoes 🥭
1mo
This is an interesting perspective on utilizing data to mitigate risks in insurance. How do you see the adoption of these new metrics playing out among customers who are traditionally hesitant to share their data? Additionally, are there any specific examples where such measures have led to significant risk reduction in high-risk areas? Looking forward to your thoughts.
Technical Support at DHL
2moIf only there were more economists and less lawyers in the insurance business many problems will be solved on their own.