The risk of non-access to data or prohibition of use In today’s big data world, for insurers, access to the data of policyholders is not as natural as it seems. In the case of distribution by brokers, the client is that of the broker and not of the insurer. Multichannel distribution complicates organization. As policyholders are increasingly mobile, one policyholder can be client of the insurer by underwriting with an employee of the insurer or, for another risk, client of a broker. It is difficult for the insurer to consolidate all this information: data governance is an issue of real importance. Moreover, regulatory changes, which aim at protecting consumers, fall in line with a restriction of the choice of pricing criteria, notably for nondiscriminatory reasons.
The European ban on the use of gender, which is nevertheless discriminatory for certain risks, is a glaring example. The right to oblivion, for the benefit of patients who have suffered from certain serious illnesses, came into force in mid-February 2017. In order to underwrite a credit insurance contract, persons who suffered from cancer, without relapse for 5 years, are no longer required to declare their former disease. In addition, the law provides for a reference grid that defines, by pathology, the periods within which people can underwrite an insurance without premium or disclaimer of warranty (AERAS). The ACPR ensures compliance with this right to oblivion.
Here, we notice contradictory wishes: on the one hand, the authorities’ concern to ensure the protection of individuals’ privacy and combat discrimination, a precaution to which the public adheres; on the other hand, the wish of individuals to be treated within their particularism and benefit from personalized offers. This does not facilitate insurers’ tasks, especially as the client experience of other economic activities, based on tangible products, is not hampered by the same measures and controls on the use of data.