Very Risky Business: The Pros and Cons of Insurance Companies Embracing Artificial Intelligence
It’s a new day not very far in the future. You wake up; your wristwatch has recorded how long you’ve slept, and monitored your heartbeat and breathing. You drive to work; car sensors track your speed and braking. You pick up some breakfast on your way, paying electronically; the transaction and the calorie content of your meal are recorded.
Trends Point to an Accelerated Future for Risk Selection
This final article explores the future of accelerated underwriting in the context of a broader consideration of the future of risk selection in general. It follows some of today’s prominent trends – personalized products, underwriting engagement, and heightened risks and regulations – to their potential long-term outcomes, and concludes with basic steps insurers can take today to help lead the industry of tomorrow.
Why Life Insurance Companies want your Fitbit Data
Customers can withhold their fitness data, but that will result in higher premiums, which may put life insurance out of reach for low-income earners. This in turn could have an impact on whether would-be homeowners can take out mortgages, some of which can require a life insurance policy on the principle borrower.
LOMA Resource: Global Update - Pressures and Possibilities
What effect will changing—and challenging—economies, politics, and regulations have on life insurance companies worldwide?
Players, Principles and Paradigm Busters (LOMA Resource)
Insurance is a complex business comprised of lots of moving pieces. Here’s a peek at who wants in the game, what the rules are, who wants to change them—and more.
Why ‘Big Data’ Will Force Insurance Companies to Think Hard About Race
The controversy surrounding the political consulting firm Cambridge Analytica’s use of personal data harvested from social media accounts without the users’ permission is among the first of what likely will be a long series of public debates about how the use of “big data” can shape our lives. And one of the most obvious battlegrounds where we should expect such fights to play out soon is in the insurance industry.
Consumers, Insurers and Genetic Information
The United Kingdom may have come up with a good, practical compromise.
Industry Directions: Our Annual Forecast (LOMA Resource)
Life insurance companies continue to recalibrate in the face of new regulations, evolving technologies and customer expectations, and more. Of great concern are new regulations, with the (currently delayed) Department of Labor’s fiduciary rule taking center stage. Another year of low interest rates is placing pressure on profitability. Finally, insurers have no idea how tax reform, on which Congress was working at press time, might affect life insurance and retirement products that currently are tax advantaged.
Big Data Sharing and Predictive Modeling: 5 Things for Regulators to Consider
The U.S. market is ready to realize this potential from these expansive technologies and networks but a regulatory pathway needs to be established to safeguard adherence to our core insurance principles and an individual’s right of privacy.
Genetic Testing and the Power of Knowledge
Genetic information is treated exceptionally carefully but the growing use of predictive tests by consumers raises concern that the results could influence their approach to life insurance.