Insurance policy discounts through your Facebook account
Generally, by hearing the word Facebook, our mind thinks of Family and friends. But keeping that aside, we can do lots of useful stuff with Facebook.
Advertisers on Facebook
You may observe, while scrolling through your Facebook news feed, you may come across some advertisement with SIGN UP option, clicking on it asks you to access your profile. Proceeding, all the details like your Name, age, gender will be transferred to the company database.
Insurance companies strategy
Life insurance companies are in discussion to see if access to social Profile can be the chance to offer the better premium for a policy.
RM Vishakha MV & CFO told “We are toying with the reinsurers that if an individual gives us their social profile, can we give them better pricing. If you get that data, you underwrite better rather than staying static”
How is pricing decided?
Pricing of the policy depends on many factors. The policy of pricing of any insurer is done at the beginning of the policy being issued.
The factors which affect the pricing of policy are the age of the person and the premium is calculated using the mortality table. According to that, companies refer to the rate of deaths in a defined population.
But technically, we cannot consider pricing range depending on these few factors. As we know premiums still go up as the age of the insurer goes up. But you’re leading a healthy lifestyle at a later stage of your life. For instance, a smoker can be non-smoker and non-smoker can start smoking and drinking. So, well all these factors are considered to get adequate pricing range for customers as well as for companies.
When you give access to your Facebook profile, company coordinators can have access to your personal details even your check-ins at Restaurants and bars. The insurer may proceed you as a high-Risk individual and charge you differently than a Non-smoker.
Pricing of the product is not solely dependent on the company, but all the products required to be approved by the Insurance Regulatory Of Development Authority Of India. ( IRDAI ) before they can sell in the market. Even if there is the change in the pricing during the policy term, all such details will have to be notified to IRDAI.