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Technology is opening up a world of data that allows insurers to make a much more precise risk assessment of clients. This offers an opportunity for the sector to boost profitability, but its use also comes with some moral dilemmas. Intelligent Insurer reports.
In the same way that telematics has started to change the motor insurance business, a rise of technological devices allowing precise data-gathering on the habits and lifestyles of individuals has the potential to revolutionise some personal lines businesses such as life insurance, term life and occupational disability insurance.
Using an array of devices including heat, pressure or tracking sensors combined with wearables that can measure your heartbeat, among other things, this new wave of technology is developing into a game-changer for the insurance industry.
Insurers are developing data-driven products that offer reduced rates to lower-risk clients and help driving business risk down. At the same time, higher-risk clients are likely to have to pay more and may, in a worst-case scenario, face difficulties in getting insured.
Big Data, Technology, Insurance, Jonathan Howe, Telematics, PwC, Generali, Gianpaolo Meloncelli, Discovery, Trak Global, Nick Corrie, Flood Re