Let’s talk data privacy.
5 trends we’re seeing.
The need for data privacy isn’t new. It’s just more complicated today with the rise of internet usage, search engines, online applications, and social media. How companies use and store data is a growing concern not only for consumers, but also for the companies themselves, as it becomes a major focus for litigation and legislation
Trends on the horizon
So, what’s happening to address these issues and how does it impact the insurance industry? Here are five areas where we see trends developing.
1. Stronger privacy laws:
Currently in its second reading, Federal bill C-27, the Digital Charter Implementation Act, reflects a global push to strengthen privacy regulations – a trend that started with the European Union’s General Data Protection regulation (GDPR). It proposes to expand the Privacy Commissioner’s powers, impose heavier penalties for privacy breaches, and add new regulatory requirements for organizations.
2. Data ethics:
The use and storage of data has always been a concern. With new technology involving biometrics and health-related personal information, there’s more pressure on how that data is stored and how it’s being used.
3. Website tracking:
There’s increased scrutiny of digital marketing practices and the tracking of internet users. PIPEDA requires consent from individuals for the collection, use and disclosure of their personal information. Bill C-27 proposes new rights for individuals, including the right to request that personal information be deleted.
4. Children’s online privacy:
There’s an increasing call for the Canadian government to do more to protect children online, especially with regards to behavioral tracking.
In the United States, for example, a key judgement was brought against Epic Games, maker of the video game, Fortnite, to pay 275 million USD for violating the Children’s Online Privacy Protection Act (COPPA). They must also refund 245 million USD for tricking users into making unintentional purchases. In addition, Epic Games will be required to adopt strong default privacy settings for children and teens.
5. Artificial intelligence and data privacy:
As organizations incorporate more AI into their operations, a key concern is data privacy and security. Many organizations, including those in the insurance industry, have access to large amounts of sensitive personal and financial data. The use of AI can increase the risk of this information being misused, hacked or stolen.
These are a few examples of the heightened scrutiny of data privacy. As new laws become enacted, it will directly impact the insurance industry when compliance updates or reviews are required.
Indirect impacts such as the potential for increased lawsuits or litigation, are always on the radar when it comes to insurance coverages.