From Standardised to Personalised — Insurance’s Data Revolution
Introduction
We’re more than halfway through 2025, and data has become the powerful engine that drives our world. Consumers’ streaming preferences, fitness metrics, and sports allegiances all exist as digital breadcrumbs scattered across countless platforms. While privacy controls limit access (another blog for another time), the reality is that our digital lives create remarkably detailed portraits of who we are.
For insurance customers, this data revolution means the end of one-size-fits-all policies based solely on age, gender, and location. Today’s insurers can now craft bespoke coverage tailored to individual lifestyles, behaviours, and risk profiles, resulting in an insurance policy as unique as a consumer’s fingerprint.
A Digital Footprint Paints A Risk Profile
Every digital interaction creates data points that paint a detailed picture of a customer’s lifestyle. Their smartphone can reveal a cautious driver who maintains steady speeds, or someone with aggressive acceleration habits. Their fitness tracker can reveal a fitness buff, or a couch potato. Rather than invasive surveillance, this is precise risk assessment.
These granular insights allow insurers to offer personalised premium discounts for healthy behaviours. As smart devices continuously stream data, insurers can recognize positive lifestyle changes and adjust rates accordingly, creating a feedback loop where good choices result in immediate financial rewards and encourage sustained healthy habits. This model holds particular promise in the UK, where NHS wait times drive increasing demand for private health insurance, and behaviour-based pricing could make coverage cheaper and more accessible. South African insurers are exploring similar approaches, drawing data from both wearables and smartphones to create comprehensive lifestyle profiles.
Building Comprehensive Risk Profiles
Beyond wearable devices, insurers can leverage diverse data sources to anticipate major life transitions. Credit bureau transaction records often reveal telling patterns. For example, when a customer trades their two-seater sports car for a family SUV, it signals potential opportunities for expanded health, life, or auto coverage. Advanced AI algorithms transform these insights into predictive models that anticipate customer needs before they’re even expressed.
This predictive capability enables insurers and brokers to collaborate on sophisticated lead generation, cross-selling, and upselling strategies. AI and gen AI can analyze customer personas to develop tailored product offerings, whether through personalised digital experiences or enhanced call center interactions. The result? Proactive service that feels helpful rather than intrusive.
Data-First Insurers = Winning Insurers
The insurers that will dominate tomorrow’s industry are those that can master three critical capabilities: data optimisation, commercialization, and technology adoption. Unfortunately, so many of today’s insurers still view data as a byproduct rather than a strategic asset. But those that can successfully implement the right technology solutions can compete at an entirely different level, turning key data into competitive advantage and ultimately, customer value.
To listen to the related podcast, “Insuring Tomorrow: Data, Innovation & the Future of Cover,” featured on The Insurance Apprentice, click here.
