“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.”