Real-Time Data: The key to hyper-personalised insurance

Joy Agwunobi 

As the digital revolution continues to redefine the landscape of financial services, the insurance industry is undergoing a rapid transformation. FinTech Global, a key intelligence provider on fintech trends worldwide, has highlighted the increasing impact of real-time data and dynamic pricing in ushering in a new era of hyper-personalised insurance solutions globally.

In its recent feature titled “How Real-Time Data and Dynamic Pricing Are Revolutionising Insurance Coverage”, the firm explores the disruptive technologies enabling insurers to move beyond traditional, one-size-fits-all policies. This new model is built on data drawn from wearables, smart home devices, environmental sensors, and telematics, tools that provide insurers with continuous insight into individual behaviours, lifestyles, and risks.

According to FinTech Global, this wealth of real-time data is enabling insurers to design responsive, flexible coverage models that evolve with the lives of policyholders. In doing so, the industry is moving closer to a future where insurance products are not only personalised but inclusive—extending coverage to previously underserved or uninsurable segments such as gig workers, neurodivergent individuals, and communities facing climate vulnerabilities.

One of the most profound shifts highlighted in the report is the move from rigid risk models to adaptive frameworks that accommodate diverse user needs. Rather than rejecting individuals based on static risk assessments, insurers can now adjust offerings dynamically. For instance, it highlighted that  gig workers can benefit from short-term or event-based policies, while neurodivergent individuals may prefer virtual care tailored to their communication preferences—services now feasible through platforms like Air Doctor, which connects users to over 20,000 medical professionals across 84 countries.

Efrat Marmur, vice president of marketing at Air Doctor, emphasises that personalisation is central to building a more inclusive insurance ecosystem. She explains that the integration of real-time data extends far beyond just enabling dynamic pricing, it empowers insurers to shift from a traditionally reactive model to one rooted in proactive care.

According to Marmur, embedding behavioural incentives into insurance policies can drive healthier lifestyle choices and better decision-making, ultimately reducing risk exposure while enhancing the overall customer experience.

“Personalisation, without a doubt, allows us to move from a model of risk rejection to one of risk adaptation. Instead of static coverage options, insurance interfaces should evolve based on the user’s context: their travel patterns, location, or even language preferences. For example, if a traveller frequently visits remote areas, the UX could proactively surface telehealth options,” Marmur stated

This shift, she added, not only creates a more responsive user experience but also helps extend insurance accessibility to individuals and communities that have long been excluded from traditional offerings.

“Incentives can be as straightforward as rewarding policyholders for completing health assessments before travel, staying up to date with vaccinations, or seeking early care when symptoms emerge,” Marmur added, noting that these proactive nudges, delivered via user-friendly digital platforms, can lower claim costs and lead to better health outcomes.

However, the promise of hyper-personalisation is not without its challenges, the fintech firm noted that the chief among them is the issue of data privacy. With wearables and IoT devices generating massive streams of sensitive information—such as heart rate, sleep patterns, and location—insurers must tread carefully. Without stringent data protection protocols, they risk alienating the very customers they aim to serve.

Adam Feiler, senior vice president of Global Sales at Air Doctor, highlights the critical balance between innovation and privacy in the evolving insurance landscape. He stresses, “Trust is the foundation of this model. Consumers may be open to sharing wearable or environmental data if they receive immediate, meaningful benefits in return—such as personalised travel health support or smart premium adjustments based on their activity or destination. However, privacy must always come first. This means prioritising data minimisation, anonymisation, and ensuring users have full control over how and when their data is shared. Personalisation should never compromise autonomy; instead, it should empower it.”

He notes that regulations such as the European Union’s GDPR set high standards that must be respected across borders, particularly as insurance becomes more digitised and globally integrated.

Feiler points out that the challenges facing the insurance industry go beyond technological barriers, they are deeply structural. He explains, “For insurers to offer usage-based pricing, intelligent data sharing, and flexible coverage, regulatory frameworks must evolve to become more agile and consumer-centric. This is particularly vital for cross-border travellers who depend on harmonised digital health systems.”

The need for regulatory reform is further compounded by the fragmentation of global data-sharing standards. Without alignment in these standards, scaling personalised insurance solutions internationally remains a significant challenge. As a result, many of these innovations risk being confined to pilot programs or niche markets.

One of the most transformative aspects of hyper-personalised insurance is its potential to include previously excluded populations. The International Labour Organisation estimates that 1.6 billion people globally work in the gig economy—many of whom have limited or no access to traditional insurance coverage.

According to FinTech Global, by leveraging real-time data and digital platforms, insurers can create solutions that are not only tailored to individual needs but also more accessible to diverse groups. This approach could bring much-needed financial protection to people, irrespective of their geographical location, neurodiversity, or employment status.

FinTech Global further emphasises that hyper-personalisation represents a paradigm shift in the insurance industry. To fully realise this shift, there must be a rethinking of not only product design but also data ethics, user experience (UX), and regulatory frameworks.

As insurers increasingly embed incentives, prioritise privacy, and tailor offerings around users’ lives, they can unlock new value for customers and markets alike. For previously overlooked demographics, this could mark a historic turning point in access to coverage.

“The success of this transformation,” FinTech Global notes, “will rest on three pillars: trust, flexibility, and an unwavering commitment to consumer needs. With these in place, the insurance sector can finally become as dynamic and diverse as the people it seeks to serve.”