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Scooped by Huy Nguyen Trieu
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When innovation will make you pay more for your insurance

When innovation will make you pay more for your insurance | Disruptive Finance and Fintech | Scoop.it

"With healthcare costs rising across the developed world, many arguethat the rise of wearable technology as a way to determine health insurance premiums is inevitable–and one company in Switzerland is putting the idea to the test."

Huy Nguyen Trieu's insight:

Many new services have been launched in Insurtech (i.e. tech innovation in insurance) based on the argument that consumers will be paying less

For example, if you were to go to wear an iWatch and go running everyday, your insurance premium should go down - because you would be considered as a "better risk". But I always wondered when we would see the opposite - if you do nothing and are a couch potato, wouldn't your premium go up? This was for me one of the examples that show that Fintech and Insurtech could have important social impacts, and that we should talk more about ethics and values in our industry

So, that has happened. CSS, a Swiss insurer is designing new services around wearables, that will - as expected - reduce the cost for active members, but - and that's a first - increase the cost for couch potatoes. 

And if we remember that insurance is the mutualization of risks, it's not surprising that we will face more and more of these challenges as technology allows us to individualise risks...



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Scooped by Huy Nguyen Trieu
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Is more data good or bad for finance? And society?

Is more data good or bad for finance? And society? | Disruptive Finance and Fintech | Scoop.it

A standard line you hear from fintech promoters is that innovative digital technologies can liberate the world by bringing financial services to the financially excluded.

Yet, as we've noted on numerous occasions, there's something disingenuous about this claim."

Huy Nguyen Trieu's insight:

Last week, I tried to put on (electronic) paper what I thought would be the main game-changer for finance in the next 10 years and was delighted to receive very insightful comments from many people. 


In a few words, I thought that traditional finance was not monetizing data in the way that other companies like Google or Credit Karma were doing, and that data monetization would significantly impact business models in finance. Some people agreed, some argued that banks were already monetizing data - just not in the same way as Google -, some thought that it was rubbish! Fair enough, it's hard to know what the future will be, and we're all guessing...


I was also absolutely delighted when Izabella Kaminska from FT Alphaville quoted my piece in her article "When financial inclusion stands for financial intrusion". (I am a big fan of hers, and her healthy skepticism about 'technological progress'). I wouldn't do her much justice by paraphrasing her thoughts, so I encourage you to read her excellent piece. It reminds us that there is much to be learnt from history, especially when we think about data privacy rights. 


Follow me on Twitter here 

And my blog here


 

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