The Ethics of Personalisation and Behavioural Fairness
The digital revolution that is happening now in insurance is resulting in some profound changes. A lot of good will come out of this, with practices long past their use-by-data swept away. At the same time, ethical concerns are being raised and challenges prepared, in response to some of the outcomes being experienced. Four ethical themes stand out…
- the impact of personalisation on how insurance products work
- retreat or reinvention – the move to a more service orientated market
- the changes this brings to the business models of insurers
- the way in which this changes relations with consumers
Here you will find independent and detailed analysis of the fundamental changes happening in insurance at the moment. Many of the articles drawn on academic papers and research results, from Europe, the Americas and Asia. And while there is a great deal of challenge in some of the articles, there is also a great deal of support for the need for change.
If you want to deepen your understand of the big underlying currents that are driving digital change in insurance, you've come to the right place. Over the past ten years, I watched and analysed the key developments in digital insurance. Out of this has emerged a series of interlinked themes - fairness, personalisation, product or service, and time and identity.
Here you will find many of the articles that have come to define the fundamental challenges facing insurance. I've debated them in numerous conferences, and in universities across the UK, and in Ireland and Switzerland. Progressively, insurers and trade bodies have recognised that these ethical issues are here to stay and need to be addressed.
In September 2019, I was the keynote speaker at the NRP75 conference, a Swiss Government project delivered by the University of Zurich and Swiss Re.
This guide brings together six article I wrote in 2019 about the fundamental challenges facing insurance. Each of them is relevant to underwriting and together, they present the big themes that leaders and strategists need to know. It's free to download - just click on the guide's cover to go to the download page.
Re-invention or Retreat?
Consider these words in 2018 from the CEO of one of Europe's leading insurers...
In life insurance we will move to more of a service offering, developing advisory services more than taking financial risks on to our balance sheet.
This move to a more service orientated offering is one of the main outcomes of the two trends looked at above - behavioural fairness and personalisation. On the face of it, this service based move ticks all sorts of boxes - better health, less flood losses, etc. Yet like any significant shift in a market's orientation, it raises ethical questions around the wider implications that will result from it - the availability of risk transfer for example.
In this article, I analysed those wider implications... Is a retreat from insurance underway? And I followed this up with a critique of signposting, one of the early outcomes of this retreat... Is signposting as ethical as the market believes?
For an examination of the fundamental issues here, read this... What is insurance? And why data analytics makes this matter.
Data Ethics in Insurance Underwriting
or search across all articles for what interests you...