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101 Things #023: Insurance is moving from looking at the past performance of something to looking at...

A dated future observation from Jim Carroll’s December 7, 2021 “101 Things We Know About Our Future” list.

Insurance is moving from looking at the past performance of something to looking at real-time indicators from that thing
101-thingsforesight-receipt2021
Publish Date2021-12-07
Updated Date2026-09-18
Made Date2021-12-07
Horizonnow
Outcomeopen
Confidencemedium

Insurance spent centuries pricing the past. The future belongs to those who can price the present.

— Jim Carroll

Original 2021 statement: Insurance is moving from looking at the past performance of something to looking at real-time indicators from that thing

What Jim has written about this

The grade: Hit. This is usage-based insurance, and it is now mainstream — Progressive Snapshot, Root, Tesla’s own embedded telematics policies, and a long list of others price drivers on real-time behavior. The “GPS enabled performance measuring device” I described turned out to be the smartphone in your pocket and the chip already built into the car. Called it.

By 2023, with AI accelerating everything, I distilled the entire decade-plus of these predictions into a single line about the deepest shift in the business: we’re moving from a world in which insurance risk is assessed by actuaries looking back in time, to one that involves real-time or forward-oriented predictive risk analysis. That’s a substantial, significant change, and AI helps to take us there.

Here’s where I keep myself honest. For all the talk of real-time, forward-looking, instance-oriented insurance, the uncomfortable truth in 2026 is that the bedrock of the business is still the annual, backward-priced policy — and meanwhile the thing I warned about earliest, the changing nature of risk itself, has outrun the industry’s ability to price it. I said it plainly in 2025: The fact is, the insurance industry finds itself at a pivotal moment where traditional models are colliding with accelerating risk. The very foundations of insurability are being challenged by climate, technology, and societal shifts.

From “Daily Inspiration: “It’s time to move from triage to tomorrow!”” (January 2023)

Real-time analytical predictive insurance underwriting will be the only actuarial insurance model in the not-too-distant future


Read the full pieces on jimcarroll.com:

The Trends Scorecard: Insurance - What I Predicted, and What Actually Happened
Daily Inspiration: “It’s time to move from triage to tomorrow!”

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