Life insurance start-ups are writing policies based on data pulled from digital sources rather than more costly and time-consuming sources such as lab tests. One such company, Haven Life, feeds into an algorithm information stored on databases for such things as prescription-drug dispensation and motor vehicle records to draw up policies. The company has a pilot program in which it uses the algorithms to help determine how much money people should pay out of their life insurance.
Life insurance start-ups are writing policies based on data pulled from digital sources rather than more costly and time-consuming sources such as lab tests. One such company, Haven Life, feeds into an algorithm information stored on databases for such things as prescription-drug dispensation and motor vehicle records to draw up policies. These firms are calculating that it is better to use less information than before in order to get a deal done quickly than to lose the potential customer.