11/14/2018

"Are you noticing increased consumer awareness about data privacy?"

We ask CLM members and fellows big questions about big data

By Phil Gusman

Are you noticing increased consumer awareness about data privacy? How might that impact the insurance industry’s efforts to use big data for underwriting and claims?

“Consumers are more hip to data security issues and the limits on their ability to control their own data. California has championed the cause by passing complex, comprehensive legislation to protect consumer data, and other states and even national legislation may soon follow. We expect this space to be ripe for legal challenges and lawyers will be needed to help navigate these uncharted waters.”

Teresa M. Beck,
Of Counsel, Buchanan Ingersoll & Rooney. CLM Member since 2012

“I would say that, from a claims perspective, it’s become difficult to obtain the information we know is out there. While utilizing companies that specialize in data retrieval, we still come across the few that openly post to social media about their injuries or potential windfall, only to have such evidence banned by the court for not being obtained properly.”

Diane Messerschmitt,
Claims Manager, Lancer Insurance Company. CLM Fellow since 2014

“Most consumers are against the insurance industry leveraging big data to determine risk and policies; Americans cherish their privacy. Yet, we have also seen that many folks could warm up to insurance companies using big data if the industry was better able to explain why they do it and how it saves consumers money.”

Michael Brown,
Research Analyst, LendEDU. CLM Fellow since 2018

“The specific level of consumer awareness may vary over time, but the key is how those in the industry engage with consumers regarding data privacy. When consumers know what, how, and when driving data is used, it can give them a greater sense of control. Companies that demonstrate a commitment to capturing consumers’ consent and protecting data will build greater trust with consumers.”

Sandra Maples,
Director—Telematics/IoT Product Management, Verisk. CLM Fellow since 2017

36%

Percent of Americans who are not too confident or not at all confident in the ability of companies/retailers they do business with to protect their data.

Source: Pew Research Center

52%

Percent of global Internet users who said
they are more concerned about online
privacy in 2018 compared to 2017.

Source: Centre for International
Governance Innovation/Ipsos

1 out of 3

Number of people who do not think they can control how companies collect their personal information.
Source: McAfee

75%

Percent of Americans who say they will not buy a product from a company if they do not trust the company to protect their data.

Source: IBM/Harris Poll

15%

Percent of Americans who believe insurance companies
should be allowed to use big data to determine
risk in a potential insurance policy.

Source: LendEDU

 



Phil Gusman is managing editor of CLM magazine, a publication of the CLM. He can be reached at phil.gusman@theclm.org.

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