an agent for an auto insurer below are the fields I would examine to calculate
the risks and base the rate for customers:
every potential customer, I will look at how many accidents they’ve been in involved
in in the past, access whether their license has ever been suspended or
revoked, do they have any moving violation for which they have been cited. A
person’s driving history plays such an important role in the premium they pay
therefore the factors above are critical in trying to assume how many accidents
you are likely to have in the future.
is another characteristic to consider when calculating the risk associated with
insuring a customer. For example, is has been proven that drivers under 25
years and those over 65 years old are more likely to be involved in accidents
and they typically pay higher rates. Because on average married adults are
generally lower risk for accidents than single adults, a person’s marital
status can be used to set their rates as well. Men are more likely to get into
accidents than women thus they pay higher rates.
occupation also affects their policy rate. Since some high-risk professions
which include doctors, lawyers, business executives are correlated with higher
numbers of accidents. I will consider this field because these jobs often involve, overtime, high stress levels, and
lack of sleep, thus accident levels can be much higher than the average among
A big factor that I will consider is location as it plays
heavily in a customer’s rates. Generally, the risk of filing a claim increases
if a person lives in a neighborhood with heavy traffic and high crime rates, or
if they drive a vehicle that is a common target for theft.
By closely examining the factors above and others factors
I’m confident that I can create
the perfect auto insurance rate based on risk.
ponder one or two of these “ecology” questions using the concepts
from the reading: Strategy as Ecology by Marco Iansiti and Roy Levien, Harvard
Business Review, March 2004.
firm is the keystone and why?
is the keystone in this case because by partnering with telematics to offer the
new telematics-based auto insurance it created a new ecosystem.
the ecology create new niche players—and are they investing in the ecology?
the ecology created the new players listed below
Data movers (e.g., the telecom providers that
transmit data from the OBUs to the telematics infrastructure)
Data integrators (e.g., Octo)
Algorithm creators that produce algorithms and
mathematical models to create value for the insurer and its customers
Storage providers in the cloud
Data analyst (e.g., Unipol or ISVAP)