Daily Insights

Higher the Risk, Higher the Rate

By: Mackenzie Baker | Oct 04, 2019

Posting pictures of fun activities such as zip-lining or scuba-diving may seem spectacular, but to an insurance company, it looks like a reason to raise rates. Insurance companies have been taking to social media to view client profiles and see if a client is truly as low-risk as they claim to be. 

Insurance companies possess a large amount of data on future and current clients, but when someone leaves their social media profiles open or unlocked, insurance companies are able to get even more information. 80% of insurance brands have an Instagram account according to a Gartner L2 report on this topic, giving many insurance companies the chance to view profiles of their clients and take note of the data found.

It’s not only the overtly risky pictures being posted that can hinder one’s insurance policy. If someone goes on vacation and tags their destination in an Instagram post, and then their home is broken into, their insurance company can charge them with negligence. New York was the first state to adjust its guidelines to allow insurance companies to use social media to determine premiums for clients, as long as they do not discriminate. 

The next time someone posts a picture sitting on the ledge of a cliff of bungee jumping off a bridge, they may be paying more to their insurance company as a result.