Arity, a mobility data and analytics company known for managing one of the largest U.S. driving behavior datasets, is taking the actuarial stage this week at the Casualty Actuarial Society’s Ratemaking, Product and Modeling (CAS RPM) Seminar. The company will present a session demonstrating how aggregated driving behavior data can uncover mispriced territorial risk that traditional ratemaking methods often miss.
Insurers have long relied on internal loss experience, industry benchmarks, and third-party claims history to price territories. While foundational, these inputs only capture past losses—they don’t measure how people are actually driving today, or where new risks are emerging. Arity’s session, “Driving Behavior Data for Territorial Pricing,” led by Megan Jones, FCAS, and Patrick Peters, FCAS, will show actuaries how ZIP-level behavioral signals can identify mispricing before it inflates loss ratios.
Behavioral Signals in Action
Using GeosightSM, Arity’s dataset built specifically for actuarial use, actuaries can access forward-looking metrics such as:
- Hard braking events per mile
- Nighttime driving exposure
- Average trip speed
- Overall mileage
Unlike traditional telematics programs, Geosight collects consented driving behavior from tens of millions of U.S. drivers across 96% of populated ZIP codes, covering multiple carriers without requiring enrollment. This allows insurers to see how drivers in each territory actually behave, rather than relying on historical claims alone.
Arity’s research shows strong correlations between behavior and claims. ZIP codes with the highest hard braking frequency experienced 3.5x higher bodily injury loss costs and 2.8x higher personal injury protection loss costs than ZIP codes with the lowest braking frequency, demonstrating that behavioral signals can directly inform pricing decisions.
“Risk across geography is not static and continues to evolve,” said Henry Kowal, Insurance Product Director at Arity. “Return-to-office mandates and other traffic shifts have changed patterns again. Geosight gives actuaries timely ZIP-level signals that integrate directly into existing ratemaking processes—no complex technical integration needed.”
The presentation will take place Wednesday, March 18, at 2:15 p.m. CT, with options to attend in person or via livestream. For carriers aiming to modernize pricing models and gain a forward-looking edge on territorial risk, Arity’s GeosightSM offers a new toolkit for predictive ratemaking.
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