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Alternative Data Usage in Life and Health Insurance - Evidence from Australia

October 2023

Authors

Zhan Wang, FIAA, CERA
Han Li, PhD., AIAA

Description

Alternative data sources beyond policy in-force data and claims data are increasingly seen as a valuable resource for life and health insurance. These non-traditional data sources can have advantages due to, among other factors, the speed of data collection, increased data accuracy and granularity, and the provision of information on lifestyle and behavioral characteristics. However, such data sources must be carefully evaluated to ascertain if the benefits outweigh the costs. This research utilized an interview-based approach that delves into the utilization of alternative data in the Australian life and health insurance markets.

Materials

Alternative Data Report

Alternative Data Report – Simplified Chinese Summary

Acknowledgements

The researchers’ deepest gratitude goes to those without whose efforts this project could not have come to fruition:

  • the Project Oversight Group and others for their diligent work overseeing questionnaire development, analyzing and discussing respondent answers, and reviewing and editing this report for accuracy and relevance.
  • the participants who generously shared their experience, insights, advice, guidance, and wisdom. Any opinions expressed may not reflect their opinions nor those of their employers. Any errors belong to the authors alone.

Project Oversight Group members:
Gabrielle Guzman, FSA, MAAA
Blake Hill, FSA, FCIA
Traci Hughes, FSA, MAAA
Maggie Lee, FIAA
Hezhong (Mark) Ma, FSA, MAAA
Michael Niemerg, FSA, MAAA
Mujtaba Ali Shaikh
Xuling (Shirly) Wang, FSA

At the Society of Actuaries Research Institute:
Korrel Crawford, Senior Research Administrator
David Schraub, FSA, MAAA, CERA, AQ, Senior Practice Research Actuary

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