Insurance Europe welcomes the European Commission’s objective to harmonise further the data protection legislation within the EU and strengthen individuals’ rights. The Commission's proposed Regulation on the protection of individuals with regard to the processing of personal data and the free movement of such data may however, have unintended consequences for insurers and consumers.
Insurers are concerned that the Commission's proposed Regulation will restrict insurers’ ability to process and use data to properly assess risk. Collecting and processing personal data are at the core of insurance business. Being able to access and process personal data through automated processing enables insurers to process and pay claims, determine the level of cover needed, assess the risk and hence provide consumers with the appropriate premium that fairly reflects the individuals’ needs and risks.