Testing Life Insurance Marketing Data

November 22, 2010 by Tim
Filed under: Uncategorized

In last Friday’s Wall Street Journal there was an article about how life insurers are testing the massive amounts of data for predicting american’s insurers longevity.

In the past life insurance companies needed urine or blood samples to assess insurers health, which is a very costly process. Today Life Insurance Marketers gather data from extensive files on most US consumers. These files have extensive personal information including online shopping details, catalog purchases, magazine subscriptions, leisure activities and social networks sites that insurers or prospective insurers belong to.

This information that is compiled in marketing databases can be used in predictive models can reveal as much as a person as a lab test analysis of their bodily fluids. One of the biggest test in US looked at 60,0000 records of insurance applicants. If found that predictive modeling based on consumer marketing data was accurate in it’s ability to mimic traditional techniques.

The research concluded the use of consumer marketing data which is used for direct marketing purposes, gathered online with consumers consent that can be revealing and accurate in predicting the life insurers according to the Wall Street Journal investigation into online privacy.

A part of the Aviva test was estimating a person’s risk for illness such as high blood pressure and depression they concluded that many diseases relate to life style factors such as exercise habits or fast food choices.

The Analysis

This analysis could lower insurance costs or help select or eliminate high risk applicants and doing this would eliminate the use of blood or urine samples from prospects that apply.

The industry is currently grappling with how to get policies into the hands of middle class families more cost effectively since the sales of life insurance products are down by more than 45% since the mid-1980’s.

Making the use of a trove of new information being assembled by giant data collecting firms that drive surveys to people that file and they collect data on the behavior of people both online and off purchases to help catagorize people into groups like runners, hikers or dancers. They can also gather up data from social networking sites to identify active social networkers.

Of course, you need to acquire a list in the first place. Such a list will provide the basis for building your relationship with your customers. Buying a list is a good idea PROVIDED you are purchasing from a legitimate and reliable source.
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