Big Brother Is… Underwriting?

Speakers at the Casualty Actuarial Society’s Ratemaking and Product Management Workshop recently commented that as the internet of things spreads and encompasses devices in vehicles and homes, underwriters for personal lines insurance companies must begin to take into account “exposure data tracking.” With respect to auto insurance, carriers now have access to sensors that can track speed, braking, turning, traffic, weather, and other factors. This information could allow insurers to monitor risks in real time, rather than having to rely on estimates and trends. As fully autonomous vehicles come into the market, however, the loss experience of such vehicles and their manufacturers may become more important than the loss experience of drivers.

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