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William Vidonja said: “Europe’s insurers welcome the report’s acknowledgement of the vast opportunities that insurers’ use of big data bring for both consumers and our industry. In fact, the availability of a greater volume of data and the use of increasingly sophisticated risk modelling allows insurers to provide consumers with significant benefits, such as products that are better tailored to consumers’ needs, more accurate pricing and better risk prevention.”
EIOPA’s report is the result of a thematic review which aimed to gather empirical evidence on the benefits and risks arising from the use of big data analytics by insurers. While the evidence gathered shows the many opportunities for both consumers and the insurance industry, the report also confirms that potential risks arising from the use of big data have not materialised.
Vidonja said: “Europe’s insurers call on EIOPA to continue to monitor developments and engage with the industry on this important topic and, at the same time, abstain from regulatory measures that could hinder innovation and our industry’s ability to compete in a global market.”
While there is no specific regulation on big data, there are already many EU rules that are relevant and applicable to its use in insurance, such as EU rules on data privacy, insurance distribution, disclosures, distance marketing and equal treatment, as well as Solvency II governance requirements.
“EIOPA’s report confirms that there is no evidence of exclusion issues for high-risk consumers and acknowledges the existing comprehensive set of EU rules and insurers’ data governance arrangements. As such, Europe’s insurers believe there is currently no need for further regulatory measures, as there is already effective protection in place to ensure the responsible use of big data analytics and to prevent possible undesirable outcomes,” Vidonja continued.