Exam DISC-RM Practice Question 46
Study guide: Exam DISC-RM
A competitor begins using telematics data to offer lower prices to the safest drivers in a market. An insurer that keeps pricing without such data is most at risk of which outcome?
- A) Adverse selection, as its safer drivers leave and its book worsens
- B) Moral hazard, as its own policyholders begin to drive less carefully
- C) Lower expense ratios, because it avoids the cost of devices and analytics
- D) Higher retention, because drivers prefer not to be monitored
Answer this question and see the worked solution