For P&C insurers who sell through websites or apps, the issue of misrepresentation is extremely important. The ability of an a new online customer to manipulate rating factors means they can often significantly reduce the end premium they pay . This is important to the insurer because they receive a reduced risk premium, but it has wide ranging impacts on their overall profitability. Analytics help ID those that are customer gaming and allows an insurer to record the misrepresentation and correct it or even cancel the policy. This short video outlines the impact beyond the reduction in premium paid.
