Smart Software and an Intentional Method to Increase Revenue

July 6, 2020

The excellent write up titled “How Researchers Analyzed Allstate’s Car Insurance Algorithm.” My suggestion? Read it.

The “how to” information is detailed and instructive. The article reveals the thought process and logical thinking that allows a giant company with “good hands” to manipulate its revenues.

Here’s the most important statement in the article:

In other words, it appears that Allstate’s algorithm built a “suckers list” that would simply charge the big spenders even higher rates.

The information in the article illustrates how difficult it may be for outsiders to figure out how some smart numerical procedures are assembled into “intentional machines.”

The idea is that data allow the implementation of quite simple big ideas in a slick, automated, obfuscated way.

As my cranky grandfather observed, “It all comes down to money.”

Stephen E Arnold, July 6, 2020

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