Implement Dynamic Pricing with Real-Time Data Integration

Static annual premiums may not accurately reflect fluctuating risk exposures. LLMs can process real-time data from sources like vehicle telematics, wearable fitness trackers, or smart home sensors to enable dynamic pricing models. Premiums can adjust based on actual behavior (e.g., safe driving habits, miles driven) or changing conditions. For instance, a UBI program uses LLM analysis of telematics data to adjust auto insurance premiums monthly based on driving scores. This offers fairer pricing and incentivizes risk reduction.