Monday, October 1, 2018

Oliver Ralph - Use of big data risks making some people uninsurable

Report says consumers could miss out if insurers deem them too risky

Insurance companies are getting excited about the use of big data which new high technology can bring, but it will destroy the concept of pooled risk and many people could become unable to get insurance. 

More sophisticated use of data could create an “underclass” of people who cannot afford insurance. According to a new report from the Chartered Institute of Insurance, consumers could miss out on some types of cover altogether if insurers deem them too risky.
However, the CII paper warns that using data in this way threatens the concept of pooling risk on which the industry was founded. 

It adds: “Some people may be identified as such high risk to insurers that they are priced out of insurance altogether. Big data could, in effect, create groups of ‘uninsurable’ people. While in some cases this may be to do with modifiable behaviour, like driving style, it could easily be due to factors that people can’t control, such as where they live, age, genetic conditions or health problems.”
Financial Times


Dea Hagalaz said...

There are already millions of people who are uninsurable. Even having insurance is no guarantee that you will be able to afford to go to a doctor because many cannot afford to pay their deductible. For instance, Kaiser has reported that their clinics are full of people who are insured but cannot pay their deductible. Many cannot afford to pay for their prescriptions. People are dying because they are cutting their prescriptions, such as insulin, in half.

Have you not seen the articles of cities holding free health clinics at fairgrounds with thousands of people camping out the night before in hope of being able to see a doctor? In my little town a mobile clinic visits our Community Center once a month to help those who cannot afford to get their children the required checkup for school and to participate in sports activities.

The only criticism I have with your article is that this is not something that "might" happen in the future. It is already happening and people are dying because of it.

Kaivey said...

Thank you for your reply, Dea.