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

In the insurance industry, data collected and used for risk evaluation can vary depending on the type of insurance and the services offered. For example, when offered auto insurance, agencies and companies will typically collect data on a customer’s driving record, vehicle make and model, and age. By knowing how and when an individual drives, the company can make an educated decision about the risk involved. In life insurance, companies typically look at data on a customer’s health such as pre-existing conditions, age, weight, cholesterol levels, etc. The company uses this information to determine the risk associated with a customer’s life. In Ohio, the Ohio Department of Insurance provides additional consumer protection to insurance customers by setting specific rules that companies must follow. Companies must provide a risk evaluation process that customers can understand, as well as provide data privacy and security measures. All companies must also keep records of all insurance transactions, including the types of data collected from customers, and these records must be accessible to the Ohio Department of Insurance. In the end, insurance companies must always use accurate and up-to-date data to evaluate the level of risk associated with a customer. This helps ensure that companies can provide the best possible coverage and protection for their customers.

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

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