Designing Competitive Telematics-Based Auto Insurance Programs

By Jim Weiss  |  August 20, 2012

Could the loss ratio on your preferred book of business for personal auto go up 2 percent while you’re simply an “interested observer” of the usage-based insurance (UBI) trend? Does your recently implemented UBI rating plan do little more than cancel out your current class plan? Do you believe in the mileage estimates your applicants are providing? If you don’t know the answers to those questions, you may be at a competitive disadvantage.

In the webinar “Designing Competitive Telematics-Based Auto Insurance Programs,” Jared Smollik and I describe a hypothetical insurer losing business to competitors that have implemented UBI. We then turn the example right-side up and witness the same insurer prying profitable risks away from the competition. Case studies using real data demonstrate the key to that transformation — telematics-based pricing refinement. The prime example is ISO’s upcoming GeoMetric™ manual rule, which uses our patent-pending analytics to assess location risk generally while protecting privacy. We conclude with a discussion of where telematics technology is today and where it will head tomorrow.

Don’t get caught asleep at the wheel when it comes to UBI.

Jim Weiss

Jim Weiss is the director of analytic solutions for ISO, where he helps develop and implements the ISO Risk Analyzer® suite of predictive modeling products and services. Mr. Weiss is also leading new efforts to use social media and wellness analytics in property/casualty insurance. His articles have been published in Carrier Management, Telematics Wire, and Verisk Review, and he often presents insights at insurance industry events such as those sponsored by the Property Casualty Insurers Association of America and the Society of Insurance Research. Jim graduated with a bachelor of science in mathematics degree from Manhattan College and has earned the designations of Fellow of the Casualty Actuarial Society (FCAS), Member of the American Academy of Actuaries (MAAA), and Chartered Property Casualty Underwriter (CPCU).