Many insurance companies and banks are attempting to leverage new technology to build more detailed risk profiles and expand services to customers who would not traditionally be eligible for insurance or loans. Vitality, for example sells the Apple Watch to monitor customers’ health and adjust health and life insurance prices accordingly.
Admiral Insurance took an additional and more intrusive step when it created an initiative called firstcarquote, which analyzes Facebook activity of first-time car owners. The firstcarquote algorithm determines risk based on personality traits and habits that are linked to safe driving through customers’ posts and likes. For example, a person may be determined to be conscientious and well-organized if they write in short concrete sentences and use lists , or to be overconfident of they use of exclamation marks excessively and frequently use the words “always” or “never” instead of “maybe”. The algorithm is designed to learn and evolve over time to find the best correlations between social media data and safe driving personalities. (more…)