Predicting behaviour

The Dom Post reports:

Christchurch firm VortexDNA says its behavioural profiling technology could soon be used by banks and insurance companies to determine credit rates and premiums for their customers.

The company creates profiles of people based on their answers to a series of questions about their behaviour and values, and then makes predictions about how they will behave.

Chief executive Branton Kenton-Dau says three leading car-insurance companies in the United States have trialled the technology, using it to predict the likelihood of customers having accidents and making claims on their policies.

“We’re interested in looking at whether we can improve premiums and reduce the margin of error between their predictions of who will make a claim and who actually does.”

That sounds fascinating. I guess the challenge will be how to stop people from giving false answers in a bad to improve their profile.