Insurance has long depended on actuarial models to estimate how likely different types of losses are to occur. Actuaries study historical claims, group risks into meaningful categories, and use statis...
For years, auto insurers have relied on a combination of information about drivers, vehicles, locations, and past claims to estimate risk. Those factors can be useful, but they do not capture every de...
When an insurance renewal comes back with a noticeably higher premium, it is easy to focus on the number and blame the insurer. But insurance pricing is tied closely to what insurers expect it will co...
Insurance works by pooling risk. Many policyholders contribute premiums to a common pool, while the insurer uses that pool to pay covered losses suffered by the smaller share of customers who make cla...
An insurance premium can look like a single number on a bill, but getting to that number is anything but simple. Insurers have to estimate future claims, account for the cost of running the business,...