Price Optimization Remains Key Focus of Regulators
2015 was an active year for price optimization among regulators, as nearly one-third of states issued guidance to P&C insurers on the practice. (Within the last two months alone, Connecticut, Missouri, and Alaska have issued bulletins on price optimization.) The National Association of Insurance Commissioners (NAIC) also approved a highly anticipated white paper on price optimization at its annual meeting last November. The NAIC’s white paper will likely result in at least some uniformity among bulletins from states who have not yet released bulletins on the issue. Looking ahead, the pervasive use of big data among insurers suggests that regulators will expand their focus on the industry’s use of data and analytics in 2016. (Subscription required.)
