1. Improved Risk Assessment Historically, insurers set premiums through historical data. Big data offers them the chance to look at real-time data concerning the lifestyle, driving habits, or health behaviour of a particular individual. For instance, telematics data allows car insurance to track the manner in which someone drives. Thereby, it offers UBI models where lower premium rates are ascertained for safer drivers.

1. Improved Risk Assessment Historically, insurers set premiums through historical data. Big data offers them the chance to look at real-time data concerning the lifestyle, driving habits, or health behaviour of a particular individual. For instance, telematics data allows car insurance to track the manner in which someone drives. Thereby, it offers UBI models where lower premium rates are ascertained for safer drivers.