Big data is one of those fintech trends that leaves a lot of people puzzled. Most companies and individuals have no idea what big data even is or how it can be used to improve their daily lives. But the insurance sector, which is also keen on blockchain technology, sees big data as a way to lower yearly contract rates (that is, when people are very vocal on Twitter).
Finally A Proper Use Case For Twitter?
As great a social platform as Twitter is, the viability of this platform has been questioned more than once. No one is exactly sure as to what the purpose of Twitter is in the grand scheme of things. Insurance Companies see the platform as a big data treasure trove, which may help them reduce monthly insurance bills in the long run.
As strange as it may sound, researchers believe that there is a direct correlation between positive Twitter posts and a reduced risk of heart disease. Although this research seems to raise more questions than answers right now, it is an option well worth exploring. Insurance providers could use this research to price premiums for individuals who show signs of negativity on the social platform.
While it is true that insurance rates could–and perhaps should– become cheaper as we develop new technologies, this correlation will strike a lot of people as “odd.” Then again, sentiment analysis is a rather new field, which has not been explored by too many researchers just yet. Big data and artificial intelligence can use this data to make predictive models, which will become more accurate over time.
At the same time, this research will lead to a lot of discussion among privacy advocates. Although every piece of information shared on Twitter is public by default, some experts worry over the erosion of customer privacy. Moreover, this approach could lead to the undermining of the core principle of insurance, which is sharing risk.
To put things into perspective, combining Twitter monitoring with big data in the insurance sector could have its perks. Users could be rewarded or penalized based on their lifestyles, which translates to lower or higher insurance bills. Making healthy choices will result in potential rewards, which could go as far as cash back or even social discounts.
Unfortunately, monitoring Twitter is still a limited approach to making insurance more affordable. Many people do not use the social platform right now, nor do they have any inclination to do so in the future. Specific regions in the world face censorship, meaning that the government can filter out the messages they deem “inappropriate.” That would have a significant impact on these new insurance models as well.
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