Social Media Networking Data Analysis in Life Insurance Underwriting

In order to make an appropriate underwriting decision, underwriters will often cast a broad net in discovery requests, seeking as much documentation as possible to search for inconsistencies in the applicant or policyholder’s story or indications of potential fraud. Fortunately, the new online social networking technology may help insurance companies to improve their underwriting profits and select prospective policyholders. Neither regulators nor insurers have developed guidelines for the overall use of social data, and scientific studies have not determined what types of social medial data are referable. To fill this research gap, this study employs both literatures reviewing and Conjoint Analysis methods to indentify and weight factors underwriters prefer to use in making underwriting decision. The findings may provide information for those who employing social media networking data to make underwriting decision to attain underwriting profits, select prospective policyholders, and provide equity among policyholders.