This process has two parts: first, when designing their products, insurers analyse past events to estimate the probability of these events occurring again. This allows them to manage the risks of offering a new insurance policy. Then, when a client buys an insurance policy, the insurer uses data to assess the risk posed by the new customer. This process is referred to as underwriting
Big data and its big benefits for insurance consumers : regulation must allow innovation by insurers for full benefits to be realised
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This process has two parts: first, when designing their products, insurers analyse past events to estimate the probability of these events occurring again. This allows them to manage the risks of offering a new insurance policy. Then, when a client buys an insurance policy, the insurer uses data to assess the risk posed by the new customer. This process is referred to as underwriting