Week 10 Flashcards
What makes emerging risks a challenge to insurers?
Emerging risks have less information and so pose as a higher risk
What is difference between small data and big data?
It is quite literal that small data is smaller in volume and that big data is larger in volume
What are the three pillars to big data?
Velocity (speed at which the data is analysed and processed), volume (How much data there is) and variety (The different types of data and sources)
What might 3 benefits to big data be?
-Underwriting speed
-Premium accurate pricing
-Lower premiums
-Higher sales
What are the correlations between positive correlations, negative correlations and no correlations in big data?
Positive correlation- Higher premiums
Negative correlation- Lower premiums
No correlations- No change in premiums
What might an example be of a reliable and unreliable correlation?
Reliable- A family may downsize their house to help pay for medical bills
Unreliable- Eating grapes before driving makes crashes in drivers higher
What is IoT?
Internet of Things, it refers to devices such as a cars telematics to transfer data to the insurance group
How can IoT be beneficial to insurance based on profit?
Due to more customers buying their for example car insurance with a black box telematics as it lowers your premiums
what is a push notification?
It gives insurance the ability to deliver notifications directly to the policyholders phone such as policy changes, payments owed or updates on claims
Its stormy, a tornado is around your house, your insurance has sent you a pre agreed £20,000 for damages, what time of insurance have you got?
parametric insurance
What are the three stages to parametric insurance and what happens during such?
SMS select (what trigger event), measure (what measurement will fire the trigger) and settle (after trigger set out, claim/ payment made in days)
What might be a grand example of parametric insurance?
A pandemic such as COVID-19
Whats the example with ebola and parametric insurance?
250 deaths, 45 mil released, 750 deaths, 60 mil released. the total was 2.5 billion
