New landscape means new laws
DATA ISSUES SUCHAS INFORMATION ASYMMETRY AND DATA SHARING CAN BE PROBLEMATIC Companies with operations that touch the EU are adapting to the new reality of the EU’s General Data Protection Regulation (GDPR) requirements. Although standards for data protection may be less stringent than GDPR, a thorough understanding of the law surrounding data protection is essential for any insurer operating in emerging markets. This is particularly the case where inclusive insurance products are offered to individual consumers andwhere customer data is being shared between distribution partners such as mobile network operators and insurers. The IAIS has warned of the high degree of information asymmetry between insurers offering inclusive insurance and their customers and considers this a particular area of conduct risk.
There may also be overlapping regulations where data crosses borders. Insurers and their partners will need to consider what regulations and standards are applicable to avoid falling foul of data protection requirements. Where data is shared between insurers and their local partners, it is important to consider who controls and accesses such data. An insurer may not have ready access to client data held by its partner – for example a mobile network operator – which canmake it difficult for the insurer to understand the risk and price schemes appropriately. Insurers and their partners may consider entering into data-sharing agreements to enable more accurate pricing and efficient risk transfer, reducing the potential for disputes, and ensure that adequate protections for data subjects are built in with the appropriate customer consents being obtained by partners.
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