Thanks to a supercomputer owned by data analytics company LexisNexis, your
insurance company can find information on just about every aspect of your
life, allowing them to predict, assess, and manage the risk involved in
offering you services. The program can also use the information in order
to get you to increase your coverage, market new products to you, or raise
your premium or drop your coverage if it finds that you have done something
wrong. The program can find out anything, from a new baby to a DUI conviction.
Using utility bills, it can even tell when you moved into your home, when
you moved out, and whether your house is vacant.
Insurance companies hire LexisNexis to collect information on customers
from more than 45 billion public records as well as information provided
by affiliated businesses. This information is then used as a tool in “predictive
analytics,” a method of determining a person’s needs, wants,
and even vulnerabilities based on different aspects of their life. This
information is then passed onto insurers, who can then contact their policyholders
and ask them specific questions that they already know the answer to.
While many consumers may find this disturbing, LexisNexis contends that
there is nothing wrong with this method of data collection. Rather than
an invasion of privacy, it is seen as a way to provide helpful service.
LexisNexis is not the only company using this tactic. Credit reporting
agencies like TransUnion are also trying to gain an edge in the realm
of supercomputing, a reminder that it is extremely important to
check your credit report for errors.
Anonymity may be a thing of the past.
This supercomputer is a supersleuth for insurers.
Schedule a consultation with a Chicago consumer lawyer at Sulaiman Law Group, LTD today.