State Farm has a catchy little phrase that says, ” Like a good neighbor state farm is there”, but are insurance companies really good neighbors? Many may say no because insurance companies are based on making money off of the safe people they insure. The people who best practice safety are the ones who should be rewarded!
Now that insurance companies are using more technology to watch over their clients, they can better predict who their safest customers are and who may pose a risk of costing them money. This issue with this is that being “big brother” gives insurance companies the ability to raise people’s rates just because the insurance company sees that person as a liability.
What if insurance agencies used technology and more specifically, Big Data, for good? Imagine if insurance companies analyzed their data to determine which customers were more likely at risk of experiencing frozen pipes or a house fire and then alerted these individuals of their higher level of risk. Insurance agencies could easily use Big Data to help educate people on how to live more safely to prevent the many different disasters that no one thinks will ever happen to them.
To learn how else Big Data is making industries better, check out this awesome article!