Third-party databases use increasingly powerful artificial intelligence (AI) to amass and aggregate information from every imaginable source to create comprehensively weaponized profiles of individuals. Healthcare is the United States' largest industry and largest private employer. It would be impossible to understate the Herculean amount of time, money, and energy insurers are directing toward knowing exactly what kind of health risk specific individuals represent. Health insurance carriers and other businesses can use the information in these databases for various purposes, such as targeted marketing, risk assessment, and—most importantly—pricing. Some examples of sources that contribute to these databases include:

Public records. Public records consist of information made available by government agencies, such as birth records, marriage records, and court records. These records may contain health-related information, like details of a disability or a history of substance abuse, which insurance carriers can use to assess an individual's risk.
Consumer data brokers. Consumer data brokers are companies that collect, analyze, and sell personal information about individuals to other businesses. They gather data from warranty registrations, magazine subscriptions, and online surveys. Data brokers may also have access to health-related information, such as prescription drug purchase records or medical claims data, which can provide insights into an individual's health conditions.
Social media. Social media platforms, such as Facebook, Twitter, and Instagram, can provide a wealth of personal information about individuals, including their health habits and conditions. In the modern world, people are seemingly compelled to share incredibly personal information publicly. This becomes a carrier's treasure trove. For example, someone may share on social media information about a recent surgery, a chronic illness, or their fitness goals. Insurance carriers may then use this information to make guesses about the individual's health and potential risks.
Online forums and support groups. Many individuals with specific health conditions participate in online forums and support groups to share their experiences and learn from others. Insurance carriers, often through data brokers, mine these forums for information about individuals' health conditions and treatment experiences to inform their underwriting decisions.

There are several well-known data brokers that reportedly provide consumer information to various industries, including insurance. These include:

LexisNexis Risk Solutions is a leading provider of data and analytics solutions for various industries, including insurance. LexisNexis offers risk assessment products that can help insurance carriers determine the potential risk associated with an individual based on data from public records, court documents, and other sources.
Acxiom is a data broker that collects and sells consumer information to various industries. It provides data on demographics, lifestyle, and purchasing habits, which insurance carriers can use to assess potential risks and tailor their products accordingly.
Experian, TransUnion, and Equifax are primarily known as credit reporting agencies, but they also offer data and analytics solutions to businesses in various sectors, including insurance. They provide consumer data and risk assessment tools to help insurers with underwriting and pricing decisions.
CoreLogic specializes in property and casualty insurance data, providing information on property characteristics, risk, and claims history. This information can be useful for insurance carriers in assessing the potential risk associated with insuring a specific property or individual.

One of the most popular models for analyzing and scoring individuals' health has been DxCG, now known as Verisk Health. In 2018, Veritas Capital Portfolio and Verscend Technologies completed the acquisition of Cotiviti Holdings, a leading provider of "payment accuracy and analytics." The combined company, which now operates under the name Cotiviti, specializes in healthcare analytics solutions, particularly in risk adjustment and predictive modeling. One of Cotiviti's key offerings is the Diagnostic Cost Group (DCG) model, used by insurance carriers, healthcare providers, and other organizations to predict healthcare costs and assess the risk of individual patients or populations.

Instant Insights /

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