consumers are frequently happy to share this data with insurers .
“ From using step trackers to demonstrate they are physically active to proving they are a safe driver through a telematics device in their car , growing numbers of consumers are happy to share real-world data with insurers if it helps reduce their premiums ,” he comments . “ This is great news for an industry that has always been driven by data : insurers can move on from metrics like people ’ s age and postcode and get to know their policyholders much better than they have done to date .”
In theory , this data can support more intelligent decision-making , such as giving cheaper quotes to lower-risk customers , while also being realistic about the additional risk others might pose . As Logie concludes , though , in practice , insurers have struggled to utilise data to its full potential .
“ A major reason for this is that data is often stored on different systems , in varying formats , making it challenging for insurers to obtain a single view of customers or treat them as individuals ,” he says . “ To get the most out of datafication , insurers need to ensure all customer data is accurate and easily retrievable so that it is then possible to apply analytics to uncover the insights that drive better decision making .”
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