Proceed with caution: Personal lines insurance and the pitfalls of increased data usage

An increasing amount of data is being integrated into the personal lines underwriting process, with insurers supplementing policyholder information with third-party data to build up more detailed customer profiles. But as insurers seek out the detail that gives thebest insight into risk, there is a growing concern about some of the data collected and how it might affect customers.

This article studies the pitfalls of increased data usage and highlights why personal lines insurers must be careful to ensure  their desire to harness the power of data doesn't get in the way of treating customers fairly.