as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
how does on-demand insurance company trov prevent insurance fraud or high prices?
user
i am not familiar with the startup you mentioned, but in general there are three approaches to avoid losing money in insurance business: review before policy is issued (underwriting) review before claim is paid (claims handling) setting high enough rates to cover underwriting losses the fact that trov is customer friendly / lax (make your choice of term) when issuing a policy says nothing about their rates or claims payment. it is even possible they are building a portfolio for sale, and do not really care about the claims performance (policies are sold / customers acquired now, and it takes a time for claims to arrive).
assistant