Would you trade data privacy for more active part in your insurance plan?

The secrecy of what we share on the internet is one of the concerns raised by recent scandals concerning the data harvesting like Cambridge Analytica.

Nonetheless, Italian consumers are willing to give access to their personal data under certain conditions.

This is one of the findings of a Celent research about customers view about the use of social network in the insurance business. In this study, involving 32 Italian insurers and 323 consumers, many singular findings could be found: first, a majority of customers already expect that companies use their data. Although Insurers believe that this is a good thing, given that they make diligent use of their information, consumers think otherwise because they lack confidence.

It doesn’t mean they no longer want to share their personal data, for example, to be more active in the value chain of the insurance process and obtain a better premium deal.

Even if the customers are willing to interact more with machines and robots than Insurers, the treatment of personal data has some juridical issues that need to be clarified. Hence, we asked some questions to Silvia Tironzelli, Legal Counsel of RGI Group.

Even if customers seem to enjoy giving their personal data for a more participatory stance in the insurance companies, which issues would be raised with deeper access to private data, speaking in juridical terms?

The protection of personal data is an issue that, in recent years, has increasingly taken on central importance in the legal landscape, reverberating its effects also on the insurance, economic, social and political scenarios around the world.

The European regulation scenario rushed into new laws that recently came into effect, such as the GDPR, that is affecting all the business world, the insurance scenario included; which requires a high focus on transparency, the correctness of behaviors toward the customers, contractual information, contracts execution, and customer protection. Thus, the lack of transparency in the processing of data exposes companies to the risk of penalties. Therefore, organizations need legal bases to process customer personal data to avoid misconduct and wrongdoings and to enhance company reputation and credibility.

Additionally, by legally leveraging customer data gives Companies the possibility to offer customized services and products with added values and designed to meet customer specific needs, which is one of the best ways to build loyalty and trust.

Using apps and robots after data harvesting scandals raise serious doubts on their safety in case by eventual hacker attacks. Which measures could be put in place for obtaining that best security?

In a digital world in which each of us is immersed, consciously but more often unconsciously, even cyber threats, implemented in the most various and most invasive ways, are aimed at acquiring information and therefore attacking public entities and Companies database.

To prevent any risks, it is best to rely on partners and software vendors that are certified in terms of computer security and data access.

Companies must create new partnerships with reliable and certified technological partners that guarantee excellent levels of data security to deal with the impact of the revolutionary technology changes sweeping the world, and providing Insurer’s valuable peace of mind concerning the protection of database.

So the questions are pivotal but could be overcome for the sake of both customers and insurers.

Silvia Tironzelli
RGI Legal Counsel