Risk and reward
Data and technology are starting to up-end the insurance business
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DRIVERS buying insurance from Progressive, an American insurer, get a choice: they can either supply a few bits of information about themselves and receive a quote based on the behaviour of similar people, or they can install a small gadget in their car. The device monitors their driving and adjusts the rate they pay accordingly. Those who refrain from braking sharply and stay off the roads at night can earn a discount of as much as 30% on the generic premium. For those who drive relatively little, Metromile, an insurer based in San Francisco, simply charges by the mile.
This article appeared in the Finance & economics section of the print edition under the headline “Risk and reward”
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