Loop's Inclusive Car Insurance
Loop is an American insurance startup looking to reshape the industry by offering fairer and more transparent automobile insurance prices through telematics and artificial intelligence (AI). Instead of using traditional underwriting models based on demographics (e.g., educational attainment, credit score, homeownership) that disproportionally overcharge indebted and low-income individuals, Loop developed risk assessment algorithms that only consider how and where their customers drive.
The company uses TomTom's maps, speed profiles, and traffic stats to determine road risk and add context to its telematics data collected via Loop's smartphone app. Context is crucial in telematics-based driver performance because it can establish whether an event indicative of poor driving is intentional or based on the condition of the road—for instance, a harsh braking event due to kids on the street instead of speeding—preventing bias. Also, by combining AI algorithms with the maps and traffic data, Loop can suggest safer driving decisions and rerouting that avoid roads at hi…
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