Could Big Data Result in an ‘Uninsurable’ Underclass?

“The potential for the insurance industry to leverage connected technology and big data to create tailor-made policies for all is huge. However, while an exciting proposition, it risks creating a marginalised group of ‘uninsurables’.

It no longer feels like the stuff of science fiction to imagine that one day insurers could create a ‘market of one’ across products, and provide individuals with a personalised policy, premium and risk profile.

The rise of the connected car and the development of telematics technology means that, for a growing number of drivers, policies already more closely reflect individuals’ own driving abilities rather than simply those within the same demographic pigeonholes.

Household insurance could follow suit. Trov, a service through which you build your own personal belongings inventory and are able to insure accurately against this, provides a picture of what could be possible here. In addition to smart home devices and detailed topographical mapping available to insurers, a more granular approach is possible. The same is true of health insurance, with the potential to reward and revise via policies in response to reading vital statistics via wearables.”

Full Article from Banknxt.com