A very interesting piece of information coming from Reuters tells that Insurance companies banking on research suggesting direct link between positive posts on social media and reduced risk of heart diseases are planning to deploy a combination of Big Data and sentiment analysis solution to make predictive models more accurate leading to cutting in insurance bill based on the individual behavior patterns.
According to this article in Forbes, Swiss Re, the Zurich based reinsurer says the advancements in technology had made possible to reduce the price on insurance protection to individuals but detractors fear that this comes with a price of eroding privacy and leads to personalized pricing, anathema for the insurance industry which always stood for risk sharing till now.
Social media monitoring is one of the major initiatives insurances are deploying for behavior research which will play a major role in determining the prices of policies. In fact Swiss Re has invested in a data company which allows users to store personal data extracted from various social media and exchange the same with businesses as an individual transaction. This according to Daniel Ryan, Head of Digital Analytics, points to a time, in the near future, when insurers would have imbibed the lessons of behavior research and would have a different dialogue with policy holders.
Insurers are highlighting “safe behavior “in their attempt to prod clients to lead a healthy and safe lifestyle to reduce claims and have programs to put these policies into practice. These programs assess individuals based on various parameters and life choices and recommends health improvement plans all the while keeping track of the progress via purchases and wearables.
Using Big Data and Artificial Intelligence, big Insurers can categorize their clients more distinctly enabling them to reward some and penalize others, leading some to worry that those who are unable or unwilling to improve their behavior will lose out ultimately.
For more please visit: http://fortune.com/2016/10/23/big-data-insurance-premium-twitter/