November 17, 2021

AFM presents points of attention for personalisation of premiums and conditions

The AFM presents nine points of attention for the insurance sector for the personalisation of premiums and conditions based on behaviour and data. The application of advanced data analysis for personalised insurance premiums is growing, according to a recent exploratory study by the AFM. We note that these pricing techniques offer advantages, but they could also lead to negative effects.

In brief

  • Advantage: reward for safe behaviour, disadvantage: risk of uninsurability
  • Points of attention to reduce risks
  • Call for dialogue between all stakeholders involved

Examples are insurance policies that measure driving behaviour or lifestyle. The increasing availability of data, more advanced models and algorithms enable insurers to…

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