Big data brings era of all-risk coverage macro-insurance
Big data has possibly ushered in an era of all-risk insurance coverage, or macro insurance, as technologies such as artificial intelligence become capable of analysing customer risk across different coverage areas, according to a PropertyCasualty360 op-ed by consultant Mark Breading. A singular underwriting process has been impractical thus far, but could be common in future as potential policy holders seek simpler processes. Macro insurance remains in its infancy, however, lacking regulatory framework and other considerations.
Traditional insurance lines of business will likely remain for a long time, supplemented by rapid growth in micro-insurance that often extends into new coverage areas, while macro-insurance begins a period of discovery and slow evolution. (Photo: iStock)

The concept of micro-insurance has been around for a long time, and the activity in that area is now increasing rapidly, especially due to the InsurTech movement.

Pervasive mobile and digital capabilities along with cloud computing have made it much easier to insure a wide range of individual events, activities, or things for a short period of time.