DOI: 10.4324/9781003157571-19
14 The uncertain element
Personal data in
behavioural insurance
Maiju Tanninen, Turo-Kimmo Lehtonen,
and Minna Ruckenstein
Introduction
The expectation that Big Data and Insurtech could disrupt the insurance
industry has gained popularity in recent years. Insurance companies all
over the world are experimenting with auto, health, and life insurance
products that aim to utilise policyholders’ behavioural data for various
purposes, including product and price personalisation, marketing, and
possibly even risk calculations (Cevolini & Esposito 2020; Jeanningros &
McFall 2020; McFall 2019; Meyers 2018). These developments fall under the
phenomenon of datafication, which suggests ‘taking all aspects of life and
turning them into data’ (Mayer-Schönberger & Cukier 2013, p. 35). Today,
data is everything in life that can be digitally traced: from steps, friendships,
and driving habits, to breathing, purchases, and daily movements. Digital
data’s potential for economic value creation lies in its circulation and ability
to create relations; data becomes ‘lively’ (Lupton 2016) in activated market relations. Thus, valuable data is potentially everywhere, but it is more
uncertain in that it is ‘messier’ than before; it cannot be handled and confined to certain predefined uses in the same ordered way as before.
Many of the envisioned disruptive qualities of data, such as personalised
pricing and individualised risk profiling, are not and will probably never be
feasible because they are subject to strict regulation and contradict some
of the basic mechanisms of insurance (Barry & Charpentier 2020; McFall
2019; Tanninen 2020). Yet, the potential to utilise ‘messy’ and ‘lively’ data
about ‘everything’ (Thrift 2011) does open new prospects for insurance companies, especially regarding the insurer–insuree relationship. With behavioural data, insurers gain a new kind of access to people’s lives which could
allow them to develop more selective and close-knit customer relationships
(Tanninen et al. 2021).
In this chapter, we look at these (potential) developments from the consumers’ point of view and analyse how they experience behaviour-based
life insurance products’ attempts to create new kinds of data relationships.
Our findings highlight the hesitation, confusion and doubt that people have
towards the data practices included in the new policies. They also showcase
14 The uncertain element
Personal data in
behavioural insurance
Maiju Tanninen, Turo-Kimmo Lehtonen,
and Minna Ruckenstein
Introduction
The expectation that Big Data and Insurtech could disrupt the insurance
industry has gained popularity in recent years. Insurance companies all
over the world are experimenting with auto, health, and life insurance
products that aim to utilise policyholders’ behavioural data for various
purposes, including product and price personalisation, marketing, and
possibly even risk calculations (Cevolini & Esposito 2020; Jeanningros &
McFall 2020; McFall 2019; Meyers 2018). These developments fall under the
phenomenon of datafication, which suggests ‘taking all aspects of life and
turning them into data’ (Mayer-Schönberger & Cukier 2013, p. 35). Today,
data is everything in life that can be digitally traced: from steps, friendships,
and driving habits, to breathing, purchases, and daily movements. Digital
data’s potential for economic value creation lies in its circulation and ability
to create relations; data becomes ‘lively’ (Lupton 2016) in activated market relations. Thus, valuable data is potentially everywhere, but it is more
uncertain in that it is ‘messier’ than before; it cannot be handled and confined to certain predefined uses in the same ordered way as before.
Many of the envisioned disruptive qualities of data, such as personalised
pricing and individualised risk profiling, are not and will probably never be
feasible because they are subject to strict regulation and contradict some
of the basic mechanisms of insurance (Barry & Charpentier 2020; McFall
2019; Tanninen 2020). Yet, the potential to utilise ‘messy’ and ‘lively’ data
about ‘everything’ (Thrift 2011) does open new prospects for insurance companies, especially regarding the insurer–insuree relationship. With behavioural data, insurers gain a new kind of access to people’s lives which could
allow them to develop more selective and close-knit customer relationships
(Tanninen et al. 2021).
In this chapter, we look at these (potential) developments from the consumers’ point of view and analyse how they experience behaviour-based
life insurance products’ attempts to create new kinds of data relationships.
Our findings highlight the hesitation, confusion and doubt that people have
towards the data practices included in the new policies. They also showcase