Insurers have been using big data analytics to explore new underwriting techniques for several years now. Yet events are unfolding that point to the possibility of this coming under some harsh scrutiny by regulators and consumer groups.
Big data is starting to transform insurance. It could also transform professionalism in insurance, in ways that present some pretty new risks. So what should professional bodies around the world look out for?
Over the next 5 years, I believe tensions between the insurance industry and the general public around privacy issues will grow to be as controversial as the misselling of payment protection insurance is today. This is the first of a series of posts exploring privacy and insurance.
What should insurers do to resolve the question of who will own the data created by their use of telematics in products like motor? One particular step might make a real difference, if handled properly.
Big data could herald an entirely new way of thinking about the relationship between insurer and customer. It will have transparency at its heart and rely on new ways of behaving with customers. Ethics and insurance will never be more reliant upon each other than they need to be in this new world of insurance.