Beyond Customer Consent: Privacy & Disclosure in a Digital Insurance Paradigm

The digitisation of insurance has seen innovation and transformation in the industry through personalisation, the internet of things and other new technology, and artificial intelligence. Yet the impact of digital technologies on the insurance sector is predicated on the collection, storage and use of new data in different ways. While customers may be protected in many cases through privacy legislation such as GDPR, customers are still surprised when they learn how their data is collected, stored and used, leading to deteriorating trust within insurance. This paper compares some of the contemporary challenges facing actuaries working in a digital insurance paradigm. Firstly, making it clear that even in a digital, globalised world, a one-size-fits-all approach is not good enough. By comparing some of the disclosure and privacy requirements that different regulatory environments require, actuaries will better understand how to adapt products and insurance propositions to diverse market conditions to meet customer and regulator expectations. Secondly, through specific case studies from start-ups and traditional insurers, how can customers receive greater confidence in what they consent to. Ticking a box on a privacy statement may meet a regulatory requirement, but do customers know what they agree to? This paper will share specific user research from a global travel insurance app on how to use ‘short, punchy language’ to align customers’ disclosure around location data (something that can be by nature sensitive) with the value and expectations they received when they opt into sharing such data. Finally, providing actuaries with how to ensure innovation is sustainable. We all see avenues for innovation through new and broader data between embedded insurance, open data, and wearable technology. However, just because you have the data, does not mean you should use it! There are legal, professional, and ethical considerations we should be addressed when reviewing the next insurance game-changer!

Find the Q&A here: 'The Challenges of AI in Society'