Consumers beware. Automated systems and artificial intelligence are driven by integrated data. In a Illinois Premium
rating uses consumer reports/credit rating, MVR info, Claims and other profiling data and is ONLY as good as the data being integrated. It’s not all clean or real or up to date data or real time . Errors impact consumers and decisions.
Those automated letters and cancellations and huge premium increases don’t really help real folks or economy or society.
It does boost the vanilla and data driven like nature of insurance and banking decisions. I’ve seen older people and State Farm customers upset and very confused. Emotional distress even and very time consuming and expensive for customers. To figure out and weed through.
I’m sure the industry and State Farm considers these folks non educated but definitely penalizes consumers financially. Mandatory insurance laws work well for affluent customers. Not so much for lower class and demographically targeted customers or potential customers. Folks with lots of money or stability or clean records and a nice credit rating would not understand.
When half of a family or persons income goes to car, house and health insurance and taxes it’s a sad statement about society and our economy. State Farm plays along well with these practices.
The too bad so sad arrogance of insurance gets exhausting and unhealthy for anyone except execs pocketbooks.
If your family member or you or a customer gets a nice “surprise” increase or cancel know the data they use. Don’t trust or try to understand online quotes either. The reps on the phone don’t know it either. You get a script. It’s a continual dumbing down of the industry and workforce blaming automation.
Industry wide practices of using the same rules and data to make decisions stinks for real life folk and those with not so charmed lives or histories. Data driven Profiling stinks. We all understand risk and business and ratios but at whose expense. I get agents frustration.