Overview
Most auto carriers still define rating territory by zip code, a unit that isn’t standardized geographically and is often too broad to capture the road risk a driver actually faces. This case study shows how moving to a more granular, location-based view of risk leads to more accurate and competitive auto pricing.
What you’ll learn:
- Why zip-code-level traffic data lacks the detail needed for optimal risk analysis, and how getting closer to the census-tract level changes the accuracy of your quote
- How TomTom’s maps, road attributes, speed profiles, and traffic density data (fully maintained with up to 3 years of historical data) can be integrated directly into your risk models
- How Pinnacle Actuarial Resources applies predictive analytics, including territorial clustering and smoothing, to turn raw location data into state-of-the-art rating territories
Improved territory definition gives carriers the tools for more competitive pricing, sharper market segmentation, and smarter territory expansion. Download the case study now to see how location data and predictive analytics work together to support better pricing decisions.