Duncan Minty in his "Ethics and Insurance" blog talks about the trends to an ever more granular, data-driven insurance, and whether it might come to pass.
This relates interestingly to a point made on a 10 February Passle post by Robin Merttens. He asked about the risks of ever more granular insurance removing the concept of the lucky many supporting the unlucky few, resulting in people at lower risk choosing not to buy cover and those at higher risk not being able to afford it.
This is still all a little way off, but at some point the questions will need to be faced, and hopefully resolved, as the survival of insurance is clearly something that both governments and insurance companies should be aligned on.
As opportunities to enhance the personalisation of your underwriting increase ( from all sorts of big data that suppliers are offering), then so do pressures to personalise your rates that little bit more. And ultimately, this becomes a never ending process, until of course, you end up with one-to-one underwriting. Personalisation becomes individualisation: a unique premium rate for each policyholder