This opinion piece by Stuart MacIntyre is absolutely correct. General Segmentation is dead in our industry.
Segmentation to an indiviual Segment of One is where the smart money is going in terms of Premium calculation and Terms and Conditions.
That also allows insurers to provide a service appropriate to the individual.
All of this requires an "Always on Brain" to apply AI and give the very best service to the policyholder and broker. You can't do this using people.
The noise around ‘big data’ peaked a while back, but its effects have left an indelible mark on many industries, not least the insurance sector. Big data may have removed the concept of ‘niche’ insurance but this doesn’t equate to weaker or less tailored insurance deals. On the contrary, this large volume of data, that now inundates businesses on a day-to-day basis, represents an opportunity for insurers to set themselves apart from competitors. Competition in the insurance market has never been fiercer, with a range of innovative newcomers disrupting the market. However, data, when used in the right way, can be used to set businesses apart. If data is handled in an intelligent and responsible manner, it can be harnessed to help insurers fully understand their customers as individuals, not just as categories.