University of Bologna Researchers Reveal New Findings on Social Science (From Actuarial to Behavioural Valuation. The impact of telematics on motor insurance): Science – Social Science

2023 JAN 06 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Science Daily -- Researchers detail new data in social science. According to news originating from the University of Bologna by NewsRx correspondents, research stated, “Algorithmic predictions are used in insurance to assess the risk exposure of potential customers.”

The news reporters obtained a quote from the research from University of Bologna: “This article examines the impact of digital tools on the field of motor insurance, where telematics devices produce data about policyholders’ driving styles. The individual’s resulting behavioural score is combined with their actuarial score to determine the price of the policy or additional incentives. Current experimentation is moving in the direction of proactivity: instead of waiting for a claim to arise, insurance companies engage in coaching and other interventions to mitigate risk. The article explores the potential consequences of these practices on the social function of insurance, which makes risks bearable by socialising them over a pool of insured individuals.”

According to the news editors, the research concluded: “The introduction of behavioural variables and the corresponding idea of fairness could instead isolate individuals in their exposure to risk and affect their attitude towards future initiatives.”

For more information on this research see: From Actuarial to Behavioural Valuation. The impact of telematics on motor insurance. Valuation Studies, 2022,9(1). (Valuation Studies - http://valuationstudies.liu.se). The publisher for Valuation Studies is Linkoping University Electronic Press.

A free version of this journal article is available at https://doi.org/10.3384/VS.2001-5992.2022.9.1.109-139.

Our news journalists report that more information may be obtained by contacting Alberto Cevolini, University of Bologna.

(Our reports deliver fact-based news of research and discoveries from around the world.)