NAIC Usage-Based Insurance article

You are to read a brief article by the NAIC on usage-based insurance and telematics. This is a very current and evolving issue in auto insurance, and thus the article supplements our recent class discussions of auto insurance very well
with one or two relevant and original thoughts on the material. original with your post, The article makes the point that UBI turns the traditional class-rating model on its head, with individually-tailored rates based on info from telematics devices. Does this eliminate the advantage of "law of large numbers" that is an economic basis for the insurance transaction, or does it render that law irrelevant in favor of a better model? Explain. Are there problems for major insurers offering both a traditionally-priced product and UBI side-by-side? Will UBI drive more accurate risk rating, or adverse selection, and why? What will the regulators' main interest be in UBI? Should they focus exclusively on privacy concerns, which are mentioned in the article, or might they have other concems as well? How might regulatory concerns interfere with accurate and profitable pricing of UBI?