Data, Explained: How Verikai Uses Data And What It Means to You
When people ask me what Verikai does, I explain that we use a database of 250 million people and more than 1 trillion behavioral data points, coupled with machine learning, to create risk scores and reports for insurance companies to make better and faster decisions about rates.
After they get over their initial shock of how much data we are tracking, they want to know whether they are in our database and how we source it. The answer is yes, you probably are. And that much of the data came directly from you: the consumer.
How is the data collected?
We make approximately 35,000 decisions resulting in 2.5 quintillion bytes of data being recorded every day. It’s become second nature to provide digital information about ourselves, and we rarely even realize when we are doing it. Like it or not, your data is everywhere. A few examples of this are when you:
· Use your credit card
· Apply for a loan
· Update your address with the DMV
· Enter your job title to download a whitepaper
· Fill out a U.S. Census survey
· Click on an online advertisement
Over the past decade, the influx of data captured by all these channels is astounding. In the past year alone, the amount of data produced has doubled. Like it or not, unless you are willing to unplug entirely from the digital world, your data is already out there. For many, we are willing to accept this as long as we understand how the data is being used.
How do companies use my data?
For years, companies you interact with every day use your data to improve customer experience and advertising. We’ve all had that unnerving experience where we talked to a friend about a product and then saw an advertisement for that same product the next day. While it may feel like your devices are spying on you, in reality companies are predicting your behavior using the data trail you create via your everyday actions and interactions. Likely, someone in your circle of friends also liked that product, and the algorithms predicted that you would too.
In a world of convenience and personalization, data is the new electricity. It helps our digital world to thrive. The trade-off is that we give companies this data and lose some of our privacy, but in return, we get more personalized products, services, experiences, and convenience.
How does Verikai augment and use this data?
As an applied data company, we do not believe that consumers will wake up one day and withdraw from the digital world. But regardless, we comply with all privacy standards and regulations. All of our data is consumer permissioned and can be deleted at any time. We believe that as consumers become more educated about data, it will be utilized to lead healthier lives and save money on healthcare expenses.
At Verikai, we have created a database of over 1 trillion data points on 250 million people. That’s essentially every adult with a digital footprint in the United States. Our database can match up to 95% of adults in the U.S. and provide instant reports and tools that help underwriters and brokers to make better and faster decisions.
Most small businesses (which account for 99% of companies in the U.S.) struggle to secure affordable insurance because they don’t have the claims data or a track record to prove that they are not risky. This would be like applying for a credit card without a FICO score – you’ll either get denied or pay high rates. Consider our Capture for Health ™ platform the FICO score of health insurance; the platform that insurance companies rely on to qualify small businesses for better healthcare.
How does consumer data impact insurance?
The idea of using new scores is not a novel concept within insurance. Property and casualty insurance companies were the first to capitalize on the correlation between personal behavior and insurance risk. Credit scores are a widely used tool in the P&C market. Generally speaking, the better your credit, the more responsible (and less risky) you are. This translates precisely to health insurance, except we are focused on behaviors rather than fiscal responsibility.
The beauty of health insurance is that everyone is entitled to basic coverage. And with the right data, we can help our partners match companies with better, more cost-efficient products. As healthcare costs continue to rise, businesses need to contain costs and come up with innovative strategies to compete in the market. Useful data is an imperative tool for doing this.
Big data is no longer a buzzword; it’s the reality. The likelihood of being an adult in the United States today and not having a digital footprint is slim. What we as businesses choose to do with a consumer’s information is what distinguishes us. To Verikai, that means creating a future where predicting risk is easier and more accurate than the status quo.
To learn more about how we help underwriters more efficiently predict risk, request a demo.