FAIR Video Series: Risk, Insurance, and the Future of Big Data
August 11, 2021

The availability of data for insurers has not only reduced the amount that lower-risk policy holders have to pay, it also incentivizes existing high-risk policy holders to adjust their behaviors in exchange for lower insurance costs.

Moreover, if today’s insurers are restricted from using certain risk characteristics or rating variables, large tech companies that already collect large amounts of data may make moves to enter the insurance market, leaving current insurers at a competitive disadvantage.

The Future of American Risk & Insurance (FAIR) campaign is educating stakeholders on the importance of risk-based pricing in its five-part video series.

In this segment of Triple-I’s five-part video series, Dr. Charles Nyce, Associate Professor of Risk Management and Insurance at Florida State University, explains how the democratization of big data in insurance now will lead to safer behaviors and preempt higher insurance premiums down the line.