Are Startup Auto Insurers Chasing Ghosts?

There has been a noticeable buzz around some startup auto insurers that are leveraging big data and AI to more accurately price risk in the personal auto market.

They contend that minority groups are disparately impacted by traditional rating metrics and believe big data and AI can more accurately reflect an individual’s risk profile.

Additionally, these startups claim that sharing pertinent risk data with their customers will help reduce claims and save costs.

Let me begin by saying that I love how these startups are grabbing the bull by the horns and are changing the way consumers and businesses are thinking about insurance. It takes a lot of guts, gumption, and grit to be able to pull it off.