In our latest Thinkpiece, Chartered Insurance Practitioner
Duncan Minty considers how the increase in insurers' knowledge
about our everyday lives will impact the future of the industry and
how this resembles the eighteenth century reformer Jeremy Bentham's
idea of a 'panopticon'.
Insurance is being transformed by the data it can now access
about risks. New products and services will benefit consumers, but
concerns have been raised about how all this data will be protected
All this 'big data' is providing insurers with unprecedented
information about our lives. It resembles Jeremy Bentham's idea for
a Panopticon, with consumers positioned around the ring and
insurers watching us from the central observation tower.
Regulators see data as their biggest challenge, so the Financial
Conduct Authority's recent report on pay-day lending is revealing.
Their analysis of a billion pieces of data allowed them to set new
pricing and lending rules.
Their approach resembles a 'tower within a tower', akin to the
regulator sitting in its own observation tower within a ring of
insurers, receiving streams of market and product data. A double
Is this a game changing move? Could the power of the Panopticon
radically change market attitudes towards ethics, fairness and
culture? And might consumer concerns about their personal data fall
away, knowing that regulators are able to see everything insurers
are doing with it?
View the attached article »