AM Best Explores Pros and Cons of Data-Driven Risk Management in May Issue of Best’s Review

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best reports on developing trends and issues surrounding the relationship between data and risk management strategies in the May issue of Best’s Review magazine. A key finding that emerged from the reporting is that every solution presents a new set of challenges that must be addressed in order for companies to leverage data profitably and ethically.

“Insurers have a clearer picture of risk than ever before as they shift from outdated, static data sources to real-time, dynamic information,” said Patricia Vowinkel, executive editor. “However, this new wealth of nontraditional data brings its own set of concerns.”

Topics addressed include:

Privacy and regulatory issues arising from collecting data through sources like black boxes in cars and smartphones (usually without the policyholder’s knowledge);
The pros and cons of information collected from consumer and medical wearable devices; and
The potential of programmatic underwriting practices to shift underwriting from an art to a science and the dangers of overreliance on these tools.

Full access to the complete content of the May issue of Best’s Review is available at www.bestreview.com.

AM Best is a trusted source of insurance market insight and data, and the only global credit rating agency with a unique focus on the insurance industry. Best's Credit Ratings are a recognized indicator of insurer financial strength and creditworthiness. Visit http://www.ambest.com for more information.