Dynamic Pricing in Insurance Using AI and Predictive Analytics
*Price and feature comparison websites
*Consumers demanding personalization
*New insurance entrants
Insurance coverage for low-risk clients are becoming more affordable thanks to dynamic pricing. The premium model for high-risk policyholders is distinct and is again segmented according to various characteristics and user behaviours. For instance, occasional drivers will pay less for auto insurance, whereas those who use the highways more regularly will pay more. With regard to the latter group, premiums might likewise vary depending on driving habits (such as how frequently drivers change lanes)
and adherence to speed restrictions. There are hundreds of signals that can affect dynamic pricing; these are just a few possible ones.
If insurance carriers continue to use a limited set of risk differentiators, they will find that the majority of their clients will fall into the riskier and hence less profitable group. The younger group of digitally advanced clientele would have moved to carriers who dovetail their policy plans with smart pricing that is designed for rapid deployment. Visit our website to know more about dynamic pricing.
Source URL: - https://www.simplesolve.com/blog/dynamicpricing-in-insurance-using-ai