Data was, is, and always will be the lifeblood of the insurance industry; but data is evolving faster than most of the industry tools used to capture and measure it. A dynamic insurance carrier must gain insights into new forms of data that will prove to be valuable as innovative technology and social norms emerge.

Property and casualty carriers should begin crafting products that reward consumers for responsible behavior, such as safeguarding their homes and employing smarter practices to provide less risk, thus warranting better value in the form of reduced premiums. For instance, mobile apps can capture claims, billing and policy data; and should also capture when a homeowner consistently behaves responsibly, resulting in reduced premiums. After all, the average insured will measure their relationship with the insurer by premium cost and in some cases, by the claims experience.

Behavioral norms such as leaving the thermostat on high and the alarm system unarmed are examples of opportunities to lower the risk of claims for theft, fire and other statistical liabilities. Ambient technology can provide valuable insight to underwriters and insurers who can then provide additional value to insureds via usage-based premiums or additional rebates for responsible behavior. The P&C insurance industry is on the verge of adopting these strategies as many policy systems use geocoding data, as well as drone technology, which is giving companies a better insight into an insured's property, such as unreported structures, pools and even trampolines.