Building Privacy by Design into Telematics
In the age of modernized insurance, more and more carriers are adopting telematics programs that offer personalized, behavior-based policies and automated claims services. However, as these programs become more widely available, consumer concerns over privacy continue to develop and stand as a potential barrier to adoption.
Privacy experts in the insurance sector agree that the best way for carriers to assuage these fears is to:
1. Offer a great enough value to the end user to justify the data collected,
2. Collect as little data as possible to deliver your services,
3. Use clear and direct language to communicate to the end user what is being collected, why, and how, and
4. Partner with a telematics service provider (TSP) whose modus operandi is “privacy by design.”