Are you quite active on social media? Then, it is time for you to think twice the next time you post a photograph. After the state of New York came up with new rules imposed on life insurance premiums, more and more companies are beginning to utilize your public data. So, how can your posts on social media be actually harming you? Well, in many ways. For starters, you need to stop posting any image that would mean personal harm in the long run. Similarly, you can definitely post more pictures of running or involving yourself in activities that will keep you fit.
The idea of social media influencing your insurance premiums definitely sounds ominous and that day is not far enough when services are going to pop up for creating social media posts that will appeal to insurance companies. The use of certain non-traditional sources of public data like your motor vehicle records or your court documents is already common in many places. And if you are thinking about whether it is legal, it definitely is! On the other hand, the use of social media posts for making insurance underwriting decisions is yet to hit the global market.
The guidelines have been released only in New York by the New York State Department of Financial Services. But there was no spokesperson from their side to comment on the matter. It clearly stated that this type of use of social media data is completely okay up to the point that the company is not misusing it to discriminate between different religion, race and sex. Other states are likely to follow suit in the coming days.
To put it simply, life insurance will keep your family secured financially in case of your unexpected death. The premium rates for your insurance are determined after judging several factors which might also include several medical tests. But what role does an algorithm play? In traditional methods, it always came down to a face-to-face interview but now to increase online sales, algorithms are being used where the decision-making process is automated. In some cases, you may not even have to undergo any invasive medical tests because the algorithm will give you a green light.
But with algorithms taking non-traditional data including your social media posts into account, there are high chances of discrimination. How will you know which particular data lead to a particular decision? It is very difficult to pinpoint something like that. The people do not feel secure because they do not know how the decisions are taken when an algorithm is concerned. Some companies like the Massachusetts Mutual Life Insurance Company has come up with consumer tools that will teach the people the risk imposed on life insurance by certain data. But due to several policies of the company, not every detail can be revealed to the public regarding the underwriting process.
But the future of life insurance is definitely going to be influenced by your social media but to what extent? That can only be revealed over time.