Can protection be underwritten solely through telemetrics and big data? Darren Spriggs believes it can and explains all to Paul Robertson.
“Referencing some GI memories, there were numbers released in June this year that indicated the likelihood of dying prematurely in various postcodes around the UK. So there are statistics and analysis that support the fact that even postcode as a proxy can be used.
“I have a frustration and this is not just an industry frustration; it is something that we are focusing on at Ageas Protect. We have not cracked it, and I do not think the industry has cracked it.
“When you look at the accessibility of external data, if I know that what you have got in your shopping basket is loads of fruit and vegetables, I may create one view of you. If I also know that you buy 25 bottles of wine a week, I have got another view from another piece of information. Therefore, can I make some assumptions about you without having to send you through a load of questions?”
“If we can supplement big data, external data sources, with collecting an appropriate amount of information from you, I am pretty sure we must be able to come up with more of a guaranteed price. And there are a number of initiatives in the marketplace seeking to do this.”
Stretching the concept, Spriggs raised the concept of a badge or bracelet measuring our biometrics for a time: “Maybe there is a human telematics, which means I do not need you to fill in any paperwork at all. We may get to the point where we can simplify the journey to such an extent that we will be able to identify what risk you represent. It will not be for everybody, but some people will find it attractive, because it takes potential non-disclosure out of the equation.”
Spriggs’ nirvana is a situation where we arrive at a point where we do not need to know anything about clients other than external data, or that picked up from a biometric perspective; to be able to say, “Here is a guaranteed premium.”
Obviously there would be some cases where insurers may need extra information or to say “Sorry, this is the right thing for you.” It is these cases, Spriggs sees as dropping into the IFAs laps. “Now the question is, will that be in 24 months, five years, 10 years, will it be more than that? I do not know, but it has got to be what we aim for,” he said.
Well, let’s get him back next year and see how it has all panned out.
