Insurers Pursue Big Data Despite Regulatory Headwinds

Insurance companies are putting more money and resources behind big data and analytics every day with the hope that greater insight will help their companies grow strong books of business. But carriers must tread carefully and ensure that the data and models they use pass the scrutiny of the public and regulators and are viewed as fair and relevant to the insurance product. That’s one way to interpret the message sent by 18 state insurance departments over the past several months through bans on the practice of “price optimization” in those states.