Solutions to protect consumers ’ data
DIGITAL TRANSFORMATION
Solutions to protect consumers ’ data
A study published in Computer Law
& Security Review by Dr Zofia Bednarz and co-author Dr Kayleen Manwaring in June 2022 argued that policymakers and regulators should act to prevent consumer harm before insurers invest in services , software , and strategies around big data and AI , becoming resistant to subsequent regulation . The researchers provide an overview of potential solutions , including :
• Prohibition on the use of external data ;
• Limitation on the use of data , e . g . to only specific factors ;
• Mandating transparency , including explaining the models used ;
• Privacy law improvements : higher requirements as to the privacy policies and notices , restriction of collection , disclosure , and use of personal information to what can be reasonably expected by consumers ( this last point is particularly timely given the ongoing Privacy Act review ). Dr Bednarz said : “ There is a lot of opacity and secrecy surrounding underwriting processes as well as the data practices of insurers . There is limited control of regulators over what data is collected and used by insurers , and in what ways . Consumers themselves have very little control over their own data . “ We propose a concept of ‘ extrinsic data ’ – data consumers do not expect to be collected by insurers and used for underwriting . But the issue is actually bigger : even if we know insurers are using our data for underwriting , we often don ’ t know how it translates into the risk assessment . And this is why more transparency is needed .”
60 April 2023