Personal auto insurance is already the most commoditized line of property & casualty insurance and is likely to becoming the most exact of the lines in terms of underwriting as insurers spread the movement known as usage-based insurance.
The number of insurers is continuing to grow, according to Robin Harbage, director, Towers Watson, and co-author of a report on the subject, “The Brink of a Revolution.
Towers Watson is a global professional services company and one of its strengths is risk management. It is helping insurers figure the best way to collect and use information such as what onboard computers are offering.
“Most of the smaller insurers are saying [all the data] is a bit daunting,” says Harbage. “They don’t quite know what to do with it all. It’s not like any data they’ve ever seen before. Luckily, we employ a number of people who have worked with this kind of data before.”