In today’s world, Alternative Data for Insurance is no longer reliant solely on traditional data sources like credit scores, driving records, and medical histories to determine risk and set insurance premiums. With the advent of advanced technology, there is now a wealth of alternative data available that can provide insurers with a more comprehensive and accurate profile of their clients and potential risks. This data is often unstructured and requires advanced data analytics tools to turn it into actionable insights.
The Importance of Alternative Data for Insurance
The use of alternative data is important for insurers because it allows them to more accurately assess risk. Traditional data sources, such as credit scores and driving records, provide limited information about a person’s potential risks. Alternative data, on the other hand, can provide a more complete picture of a person’s behavior and interests. This can help insurers to identify potential risks that they may have otherwise missed. Additionally, the use of alternative data can help insurers to identify potential fraud. By analyzing social media activity and online shopping behavior, insurers can identify inconsistencies in a person’s behavior that may indicate fraud. This can help insurers to prevent fraudulent claims and reduce their overall risk.
The Growing Popularity of Alternative Data for Insurancex
The use of alternative data is gaining popularity in the insurance industry as it allows insurers to more accurately assess risk and set premiums. Alternative data sources can provide a more complete picture of a person’s behavior and interests, helping insurers identify potential risks that they may have otherwise missed. By analyzing social media activity and online shopping behavior, insurers can identify inconsistencies in a person’s behavior that may indicate fraud. This can help insurers prevent fraudulent claims and reduce their overall risk.
Potential Providers of Alternative Data
Two potential providers of alternative data for insurers are AnthemData and Earnest Research.
AnthemData
This is a provider of alternative data that specializes in data on live streaming and music & audio in China. AnthemData provides information on daily active users, number of paying users, average revenue per user, paid subscriptions, digital album sales, and virtual gift income. This data can be used by insurers to better understand the spending habits and interests of their clients, which can help them more accurately assess risk. This data on live streaming and music & audio in China can be particularly useful for insurers operating in the country, where these activities are extremely popular.
Earnest Research
Earnest Research is a provider of alternative data that specializes in credit and debit bill pay data from millions of anonymous US consumers. This data can be used by insurers to better understand the financial habits of their clients, which can help them more accurately assess risk.
Conclusion
The use of alternative data is becoming increasingly important for the insurance industry. By providing insurers with a more complete picture of their clients, alternative data can help insurers to more accurately assess risk and set premiums. Providers such as AnthemData and Earnest Research offer valuable alternative data that can be used by insurers to better understand their clients. As technology continues to advance, we can expect to see even more alternative data sources become available.
