Can a Facebook Post Make Your Insurance Cost More?
New York recently became the first state to provide guidance on how life insurers can use algorithms to weed through social media posts to gauge an applicant’s risk. The state requires insurers to prove that any social media data used in underwriting is actuarially justified, logical for use, and does not unfairly discriminate against certain customers.
“We’re going through a period now where most life insurers are exploring using all types of data, not just data they get directly from the customer proactively, but other external sources of data — social media being a big one,” said Ari Libarikian, a senior partner at McKinsey & Co. He expects that within the next couple of years, underwriters will assess potential customers with automated reports based in part on their social media use.