The holy grail of insurance: each person’s individual risk behavior monitored by AI.
You assume extra risk that the company won't screw you over for what is likely to be a very modest upside. There are lots of case studies of people who got massive unexpected bills because they were trying to save a few bucks. Especially since they will be able to assign the blame to the customer for their high rates. Never trust corporations more than you have to.
These models has it’s problems but they are getting better - it’s just so easy to make wrong assumptions from ML models which only include a subset of variables.
How do you inspire the lowest performers?
It's perhaps a little better when we are talking about behaviors that are entirely under the driver's control, but gets potentially ugly if for example someone has slower reaction time due to genetics or health and thus gets priced out of insurance.
At which point there's no point in insurance, it's a glorified bond or escrow service depending on how you squint.
I guess this borders on a philosophical point, but I don't agree. car insurance is not (or shouldn't be, imo) a payment plan for likely crashes. if, for whatever reason, a person's reaction times are so slow that they would be priced out of insurance entirely, they shouldn't be behind the wheel at all.