The new year is already giving us lots to talk about in the insurance industry. With the world still in the grip of COVID-19, we now have nearly two years of pandemic data to consider. But how will it be used to change insurance risk models going forward?
In our first Insurance News Analysis of 2022, Abbey Compton and I talk about how data are being applied across the industry. For example, life expectancy has decreased nine months in the U.K. and 1.8 years in the U.S. since the pandemic. Those sobering declines and record life insurance claims are forcing insurers across L&A and group and voluntary benefits to change how they assess risk for their customers.
Data sharing and advanced analytics are also being used to help assess and mitigate real-time health and safety risks. However, the data and prescriptive analytics that may help a customer steer clear of danger may not always get the customer’s attention.
We also talk about a pricing data point cited by the U.K.’s Financial Conduct Authority. They say consumers could save £4.2 billion over the next 10 years. That’s thanks to a new rule requiring that insurers offer consumers renewing home and auto policies the same prices they offer to new customers.
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