Social networks are another area on which the design of the parametric insurance mechanism is based, where parametric insurance means a type of policy that covers a predetermined set of conditions – also called parameters – instead of the actual losses (you can see the diagram in the photo above).
This method is still in an experimental stage, but what is certain is that all individual accounts on social media networks are checked for everything that is posted.
The data is collected and examined by specialized private companies, without the user’s knowledge, with the aim of growth and profitability. For example, there are parametric insurance policies that are activated through movements of influencers’ Instagram accounts.
In such cases, a specialized company monitors the activity of the account and is able to detect the intentions of the users of the social media networks, without the user realizing it.
Example of how parametric insurance works
Much later, an individual social media account monitoring and control company sends a message to the influencer notifying them that embezzlement has been detected and that procedures have been initiated to recover an account and that compensation has been paid for damages caused because the account has been compromised.
By collecting, among other things, this data, the insurance company designs the parameterization mechanism.
Travel brings together an interest in surveillance and espionage
Such jobs are carried out by individuals and focus on the travel insurance sector to extract information that will help define the profile of the insured.
The tools used are parameters such as:
- the cancellation or delay of a flight, a ship,
- the loss of luggage at an airport after a certain predetermined period of time after the landing of the flight, etc.
Although these processes, through the development of customization mechanisms, theoretically promise profits, the prospects for the development of the customization industry are not yet certain.
