Fascinating article in the WSJ last week about an analytical program that lets life insurers build underwriting models based on public and commercially available consumer information rather than questions they actually ask insureds. If you haven’t read it, I highly recommend it.
This is a great early example of how paradigm shifts in information technology have the potentially to completely revolutionize pieces of the insurance business.
As I’ve been saying in presentations and webinars for a while, insurer underwriters in the near future will rely less on information provided by the prospect or agent and more on information already extant from third-party data sources, with the result that they’ll be able to shift resources from the gather phase to the analyze phase of the information life-cycle.
I now believe more than ever that we’re not far from the days of 2 question underwriting: What is your social security number, and can I look up everything else about you?
More Novarica Research on this topic: