• Price Optimization: Courts Put Regulators in the Driver’s Seat
  • July 27, 2016
  • Law Firm: Eversheds Sutherland (US) LLP - Washington Office
  • Earlier this year, courts in California addressed class actions brought by customers claiming to be harmed by their auto insurers’ use of price optimization and big data in setting auto insurance rates. In both cases, the court stayed the class action and deferred to the regulator under the primary jurisdiction doctrine. Because analysis of the insurer’s use of price optimization in setting rates and premiums required a factual inquiry into the technical analysis of rating factors and formulas, both courts determined that the state insurance commissioner was best suited to address the plaintiffs’ claims.