Advances in big data analytics and artificial intelligence could have a major impact on the insurance industry, Reuters reports. Insurance firms could mine social media to determine proper pricing on premiums. An insurance company could look at users' Twitter accounts and make offers based on the tone of their posts, using analytics to determine their health outlook. While companies such as reinsurer Swiss Re say the advances will drop the price of insurance protection and assist individuals in making better choices through incentive programs, those against the idea say it would violate user privacy, lead to personalized pricing, and minimize any form of shared risk. "In a relatively short period of time, maybe a few years, most of the major insurers will have integrated lessons from behavioral research," said Swiss Re's Daniel Ryan. "Undoubtedly, it will lead to a different interaction between insurer and policyholders."
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