Life Insurance Companies Can Now Access your Social Media Content, finds a Study by Gavop
Industry: Financial Services
Gavop's study delves into new regulations and advancements that improve underwriting in New York.
New York, New York (PRUnderground) January 7th, 2020
Gavop, an insurance research service driven by data, has published a study, which reveals how life insurance companies can now access the social media content of their customers to determine insurance rates. The New York State Department of Financial Services (NYSDFS) recently permitted life insurance companies to use social media content for underwriting policies. With this, New York would be able to impose strict guidelines on the validity of such data.
This development is key in the progress of underwriting, now that medical and life insurance coverage companies can take a closer look at the lives of their customers. However, this new law is not without checks and balances to prevent misuse. Insurance Law Article 26 does not permit the use of “race, color, creed, national origin, status as a victim of domestic violence, or past lawful travel in any manner, among other things, in underwriting.” Gavop’s research found that the use of technology for underwriting is not entirely new. Algorithms and patterns have been used previously to make the underwriting process more accurate. It is a move away from traditional methods of gathering information, such as questionnaires.
The study also delves deeper into the downside of this surveillance. Zimlon stresses on the necessity for regular testing to get rid of biases in this advancement. Furthermore, having stringent checks in place is of the utmost importance to prevent discrimination based on race, gender, and faith.
About Gavop
Gavop is an insurance news, and research service. Our news and analysis are driven by public data sources & private databases. Our data and news content can be used by consumers and organizations to gain further insights into local market dynamics.
