Who or How?

Auto insurance companies are in the business of determining the risk they can assign each person to whom they issue a policy. More and more, they are finding it is better to assess a driver’s likelihood of filing a claim based on his or her behavior rather than gender. California has become the seventh state to ban auto insurers from using gender as a factor for calculating the rates that customers pay. Other states have also banned insurance companies from using educational status, marital status, or credit scores to help them assess the likelihood of whether a person will file an insurance claim. Instead, insurers are taking driving behavior, miles driven, occupation, car make/year/model, and other factors more into consideration.

If insurance companies have specific data on individual customers, they can use analytic technologies to improve customer service. For example, if a driver always slows down when making turns and has never hit another car while parallel parking, an insurer can reward the customer with special offers. To learn more, please call our office. Whether it’s personal, business, or life and health insurance, our office designs and develops total insurance programs.

QUICK TIP: Many insurance companies are turning to “telematics” to determine driver risk, which receive data from participants’ smartphones or other devices that allows insurers to monitor when, where, and how a person is driving.