What type of data is collected and used for risk evaluation in the insurance industry?

Within the insurance industry, data collection and use is essential for risk evaluation. In Georgia, insurance companies are required by law to collect and store specific information to assess risk. The types of data that insurance companies collect and use for risk evaluation includes personal, health, financial, and driving records. Personal data includes the customer’s name, address, age, gender, marital status, and educational background. The health records consist of medical history and the current status of the customer’s health. Financial information includes credit reports, assets, and debt. Finally, driving records are gathered to assess the customer’s record of safe driving. Insurance companies use this collected data to calculate the customer’s level of risk. Depending on the type of insurance, the data may be used to determine the cost of the policy. For example, auto insurance companies evaluate the customer’s driving record to determine the cost of the policy. In addition to collecting data, insurance companies must adhere to strict regulations and laws to protect customer information. Companies must keep customer data secure and confidential and only use it to determine a customer’s risk as it relates to their coverage. Georgia’s insurance regulations help ensure that customers’ data is properly managed and used appropriately.

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What type of data is collected and used for risk evaluation in the insurance industry?

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