Munich Re says developments in data analytics and artificial intelligence have enabled it to discover hidden loss drivers and respond accordingly, for example by introducing loss-prevention measures or adjusting pricing. Data analytics and artificial intelligence open up new possibilities for managing and covering risk, says Munich Re. The company's experts combine primary insurers' portfolio data with external, public sources, for example about site geography, building construction, weather or socio-economic status. By applying machine-learning principles, Munich Re can discover hidden loss drivers and respond accordingly, for example by introducing loss-prevention measures or adjusting pricing. Taking the example of motor insurance, "The Box" supports cedants in managing their portfolios, by using machine learning to precisely predict expected damage.