“How Big Data is Changing the Cost of Insurance”
The BBC article “How Big Data is Changing the Cost of Insurance” stuck out to me partly because of my past experience working in a medical office with the insurance companies. The article talks about how insurance companies are using big data analytics in tailoring their rates and services to customers. The article focuses on the auto insurance industry and the benefits they can begin to offer safe drivers because of big data gathering devices. While the primary focus of the article is on the potential benefits of big data for both insurer and insured, the author acknowledges that the system is far from foolproof and presents the case study of a woman treated for depression who had her benefits cut off because of facebook pictures in which she was smiling. Big data is neither innately good or bad, but there is significant danger of overstepping and misinterpreting the data. The article concludes that the most important thing as Big data is used more and more in the insurance system, is to ensure that consumers understand how big data is being used.
“The future, most analysts agree, is to create a continuous feedback loop between insurers and consumers, so that consumers will react to the big data analyses that insurers do on them and change their behaviour accordingly.”
The article can be found at: http://www.bbc.co.uk/news/business-24941415