Social media, artificial intelligence could help payers price premiums

Monitoring health plan members’ social media activity may allow insurers to formulate better prices for coverage, though some experts are concerned about the privacy implications.

“Sentiment analysis” that incorporates data analytics and artificial intelligence is shaping actuarial models to make them more accurate than ever, according to Reuters. Tweeting about a night out with friends and good food may seem innocuous, but studies show a direct connection between uplifting, optimistic tweets and a reduced risk of heart disease, the article notes.

Rapidly evolving technology tools that keep tabs on social media usage can help reduce the price of insurance plan coverage, says Daniel Ryan, head of digital analytics at Switzerland-based reinsurer Swiss Re.

Still, the trend isn’t new. Some U.S.-based insurers collect information such as members' magazine subscriptions and car model to help them predict adverse health events, FierceHealthPayer has reported. Privacy advocates, though, worry that personal information is collected without informed consent and only negligible transparency and accountability measures. 

What some experts see as even more egregious about the personalized data push is the transformation of health insurers into arbiters of social norms--encouraging healthy behaviors with cash and financial incentives while slapping penalties on people for eating junk food or not walking enough steps in a day, according to the Reuters article.  

One insurance expert told Reuters that if every individual’s premiums and risk is simply calculated, there is no more collective spreading of risk. “But on the other hand, it’s also a matter of protecting the individual and recognizing that certain data is very personal. It comes down to striking the right balance,” PwC adviser Patrick Maeder said.

Insurers also use more conventional specific risk factors such as waist size, blood pressure and triglyceride levels to predict the onset of metabolic syndrome--and design personalized interventions to keep health plan members healthy.