Machine learning for motor pricing - and lessons learnt in Scandinavia related to electric cars

Machine learning is increasingly used for insurance, in particular in the core area of pricing. Advantages of automated pricing algorithms include increased price accuracy, the ability to more frequently update pricing models as well as identification of underlying trends. To achieve this, existing and external data sources have to be utilised in a more effective way. The benefits of data-driven decision making have to to be coupled with a robust governance framework in order to satisfy increasing regulatory demands on transparency, fair treatment of customers and data protection.

The presenters will explain how this advanced technology helped motor insurers in Scandinavia automate their pricing processes and gain a competitive advantage. Furthermore, they will share insights gained on pricing for electric cars which are increasing in popularity around the globe. Norway is on top of the leaderboard with the fleet of electric cars largest per capita in the world (over 10% in 2018) and almost every second car (49% in H1 2018) sold is electric.

A comparison to the Irish marketplace and potential local applications will be covered as well including the role of actuaries in digital transformation.