Disrupting the insurance model There is a significant loss of information “In the past, insurers would look We must remember that between the risk being underwritten today at 5 of the exact same criteria information asymmetry still and the capital which covers it. We need a when underwriting workers’ exists. Some insurers can take better way to align the two, and change can only be effective when exposures are aligned compensation. Now, the criteria advantage of that asymmetry, with the real risk customers want to cover. have changed. They are new, in particular, greenfield carriers more unique parameters linked with no legacy or emerging to the insurer’s risk portfolio to MGAs. Think about adverse (1), eliminate poor risk profiles selection. This is required in and (2), manage underwriting insurance. Some insureds pay profit and the top line. The higher premiums than others, question which remains relates which are estimated based on to the relationship between behavior. My view is that an underwriters and claims insurer should not underwrite managers, where insurers must $1 and then lose $0.20 on every continuously optimize data risk that he underwrites. But this quality, risk management, and happens. We see it in our field risk transfer decisions. all the time.” Leandro Dallemule Planck