Local Data Feed Carrier Underwriting Algorithms
Artificial intelligence can improve rating and underwriting without increasing data collection from agents and the policyholder. Carriers can apply actuarial concepts and advanced analytics to review and redefine rating territories, according to this July 29 article in PropertyCasualty360. Older methods that relied heavily on agent-provided data and poor-quality claims data generated higher than the desired variance within rating territories. This article describes the process of creating better rating territories, the kinds of data that are sought, and how data can be manipulated by carrier algorithms to tailor underwriting, rating, and premiums.