From Actuarial to Behavioural Valuation. The impact of telematics on motor insurance

Algorithmic predictions are used in insurance to assess the risk exposure of potential customers. This article examines impact digital tools on field motor insurance, where telematics devices produce data about policyholders’ driving styles. The individual’s resulting behavioural score is combined with their actuarial determine price policy or additional incentives. Current experimentation moving direction proactivity: instead waiting for a claim arise, companies engage coaching and other interventions mitigate risk. explores consequences these practices social function which makes risks bearable by socialising them over pool insured individuals. introduction variables corresponding idea fairness could isolate individuals affect attitude towards future initiatives.