SEARCH
Life insurance faces big data transformation
Life insurance faces big data transformation
New research from the Actuaries Institute suggests big data will transform the life insurance industry, with implications for cost and availability of all customers' insurance.
The research paper, commissioned by the institute and prepared by Deloitte Australia, says improved data will produce winners and losers among insurance customers.
"The good news is that many customers will benefit from this new technology," the Actuaries Institute said in a statement.
"Premium pricing will more accurately reflect risk behaviour - good young drivers will pay less than risky young drivers.
"However, there will be a smaller group of consumers who will have to pay more for insurance because they are considered higher risk, even though they may not be able to control the risk they seek to insure."
The report said insurers will be able to provide closely tailored and more accurately priced products.
However, it also added that the insurer's responsibility to disclose risk information to the consumer is unclear and may prove contentious.
Actuaries Institute president Lindsay Smartt said one of the significant challenges of big data will be around who will take responsibility for the uninsurable.
"The need to consider highly sensitive issues in the interpretation of data (such as genetic, racial or disability bias) also need to be acknowledged and addressed along with questions around what obligations may exist for insurers to inform policyholders when the data signals a change in their profile or health," Mr Smartt said.
"How government and the industry could provide solutions for those who may be described as uninsurable also cannot be ignored."
The Actuaries Institute said one of the major benefits of big data on the life insurance industry is through the increasing popularity of wearables, including smart watches, noting it can benefit both customers and insurers.
"Lifestyle and health data collected by insurers is being used to influence behaviour and to reduce the risk to which both the individual and the insurer is exposed," the report said.
"Sharing data can lead to better pricing, more focused reward programs and incentives for consumers to pursue healthier lifestyles."
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
