The Future of Dynamic Risk Analysis Is Here
Insurers Must Be Ready to Move or Be Left Behind
Historically, insurance companies have used static data to evaluate overall risk exposure and develop rates. Many of these traditional underwriting and pricing factors are proxies for how, how much, where, and when a vehicle is operated. But dynamic data sources are now available that directly measure the true risk in real time and improve risk segmentation. Companies that effectively incorporate emerging internet-of-things data with advanced analytics will have a competitive advantage, and those who do not will be subject to adverse selection.