Facebook and Artificial Intelligence will impact your insurance profile
You’re a Facebook monster. Pictures of the kids, pictures of your pals, pictures of your vacations. You post it all and you do it with style. But consider this: Social media can positively or negatively impact everything about your life. How you use it, how appropriate the content is and, ultimately, how honest you want to be becomes part of the public record just as much as your resume does. It could also effect how much you pay for insurance.
It can also have an impact on your future if you’ve just applied for a life insurance policy. Say you claimed – on your application – that you don’t drink or smoke. It might make a lot of sense to take down or make private all those party pictures of you and your crew from your Facebook and Twitter profiles.
Hiring managers – and now with growing frequency – insurance companies, are analyzing social media sites when it comes time to determine the facts of your reputation and behavior.
According to the Insurance Journal, claim investigators are already scouring the Internet with an eye toward looking into potential fraud concerning accidents, lawsuits, claims and applications for coverage.
So are social media sites being used officially in the underwriting process? While state regulators have yet to formally approve the practice, you can bet that the industry will soon use social media research as a way of determining baselines for approving ratings and setting premiums.
As with all privacy and personal data, it’s going to become increasingly important that you monitor your social networking sites to keep them professional and reflect the better qualities of your life. Pay particular attention to your friends’ list and groups which might cause negative feedback to your reputation.
It is a virtual certainty that insurers will soon use sophisticated network analysis programs and artificial intelligence tools to capture social networking data, and though the practice could create problems in relation to the Fair Credit Reporting Act, you’re better safe than sorry.
“AI’s initial impact primarily relates to improving efficiencies and automating existing customer-facing, underwriting and claims processes,” says Price Waterhouse Coopers in a recent report. “Over time, its impact will be more profound; it will identify, assess, and underwrite emerging risks and identify new revenue sources.”
AI and analytics already flag claims for inspection, set priorities for handling policy issues and flag a variety of other factors for action. The experts are using predictive analysis and AI to identify fraud throughout the insurance claims process. Using a toolbox of modeling, code rules, text mining and database search functionality, their analytics are also used to streamline processes across the settlement work they do. Analytics will also play a role in managing the full spectrum of claims management tasks while their top adjustors handle the most complex claim scenarios.
Insurance Nexus compiled a white paper, in conjunction with AIG and Zurich, aimed at understanding how those companies plan to use AI and machine learning going forward.
The practices will, with growing frequency, come under scrutiny as they impact privacy rights and concerns, but it will prove much less expensive and time consuming to limit your social networking involvement over the long haul. Edit yourself and, in doing so, you’ll be covered when it comes to policies which might discover details of your reputation.
It always pays to be honest, and you can avoid issues in the insurance underwriting process if you come clean and accept the consequences of your lifestyle.