Technology is integrated into digital natives’ lives and habits more so than any previous generation.
They came of age with the World Wide Web, and the youngest were 11 when Apple introduced the iPhone. These digital natives have been on the Internet and social media their whole lives and know how to get around it and find information.
Not until recently, largely owing to the Cambridge-Analytica exposé, has the general public been focused on how companies are using publically available data to predict and influence public behavior, with the support of big data, analytics, and algorithms.
As such, the same applies to the insurance industry with the state of New York’s new policy allowing the insurance community to use “external consumer data” to underwrite life insurance policies for consumers based on risk profiles pulled together from non-traditional data sources.
Coupled with automation, access to data such as electronic medical records, health claims data, and social media information are now enabling insurance carriers to greatly decrease underwriting and cycle times. Some of the more innovative carriers have already started offering completely fluid-less underwriting without the need for an attending physicians statement (APS).
The overall intent of the policy is to establish the ground rules for the use of publicly available information and minimize marginalization of protected groups on account of religion, race or gender. The policy dwells on two primary subjects — first, the use of individual social media data and second, the use of social media meta-data and algorithms to predict and differentiate at-risk groups.