A recent study has suggested that when an individual uses their personal fitness devices and/or their smartphone location services a digital trail is left behind in which insurers could potentially utilise to analysis the client’s specific risk and tailor a policy accordingly.
The study, conducted by US reinsurance broker Aon Benfield, has suggested that an individual’s liabilities could be covered, and accordingly priced into a single lifestyle policy through the use of Big Data.
While this could save consumers big bucks it comes with a warning. If you are thinking of making a fraudulent claim Big Data has now made the chances of your success 38% harder according to Mark Dibble from Infinity Property & Casualty Co.
Dibble cites examples where ” someone claims that their car caught fire but the narrative indicates that they took everything of value out–such as golf clubs–that might indicate they torched it. Also, people who commit fraud tend to change their story over time. The system can spot that kind of discrepancy”
With Big Data set to change the insurance industry honest consumers are the ones that will benefit by potentially lower premiums due to more accurate risk assessments and less fraudulent claims.