The research report of The Geneva Association highlights that the societal and regulatory debate about the appropriate use of personal data and the implications of the ongoing digital transformation in the insurance industry has only just begun. In this context, policy choices can have far-reaching consequences for the future face of the industry, its socio-economic relevance and the value it creates for its customers.
“In many instances, better data makes it possible to better align premiums and risks and to reduce the overall cost of insurance. This has great economic and societal benefits. New approaches to encourage prudent behaviour can be envisaged through big data, thus new technologies allow the role of insurance to evolve from pure risk protection towards risk prediction and prevention. However, the use of big data in insurance also raises trade-offs with respect to competition, individualisation of products and customer privacy,” says Anna Maria D’Hulster, Secretary General of The Geneva Association.