GDPR location data conundrum needs to be solved
Unless the market addresses how it treats location data under the new GDPR regulations, its ability to get the best of its analytics capabilities will be seriously impaired.
Data protection experts from across the UK and London insurance markets gathered in London for a roundtable discussion, hosted by Insurance Day in partnership with RMS, on how the market could manage the balancing act between innovation, enhanced analytics and compliance with GDPR.
The view was that the questions around location were still to be answered and while some believed the solutions were currently there, they were being hampered by a lack of consensus and clarity.
“I still feel very comfortable that we can process the location data and I think we can resolve that through transparency and a fair process,” said one participant. “In fact, the documentation that’s come out already says that it will be processed for assessment of risk. So, that’s already there if we use the market led documentation.
“Then it’s down to us to make sure we have fully valued that data and to do that valuation. We don’t just ask, is it personal data or special category? We look at the volume of the data we have and about the impact of harm to individuals or even commercial businesses. So, what’s your risk appetite for not putting in really good security measures?”
Panellists feared that unless there could be a consensus and the industry delivered consistency, then there would be a temptation for location data to be aggregated and data available for use within analytics would be impaired.
One said that unless the problem was solved the market would face a situation where its analytic capabilities would be put back to a position they were decade ago.
“My biggest fear is the degradation of the data to the detriment of getting analytics to drive the transformation that’s needed in the industry. There’s already been an acceptance that that’s what required; is analytics to be delivered to the point of impact to help transform the industry?”