Public Consultation on Draft Issues Paper on Use of BDA in Insurance

Public Consultation: Comments due by 16 October 2019

Background

The IAIS is seeking feedback, through public consultation, on the draft Issues Paper on the Use of Big Data Analytics in Insurance. Feedback on this consultative document is invited by 16 October 2019 at 24:00 CET (Basel time).

The paper builds on the IAIS Issues Paper on Increasing Digitalisation in Insurance and its Potential Impact on Consumer Outcomes (November 2018) by focusing more specifically on issues relating to the use of personal and other data by insurers as a result of digitalisation. The scope of the paper focuses on the use of algorithms and advanced analytics capabilities by insurers to make decisions based on patterns, trends and linkages and the availability to insurers of new alternative data sources, collectively referred to as “big data analytics” (BDA). To help understand the potential benefits and risks to consumers associated with the use of BDA by insurers, the paper considers the manner in which insurers are now able to collect, process and use data across various stages of the insurance product lifecycle, namely product design, marketing, sales and distribution, pricing and underwriting and claims handling. The paper also makes certain observations about the potential implications for supervisors as a result of the use of BDA in insurance.

A public background session will be held via teleconference on Monday, 9 September 2019 to discuss the material published for consultation. Click here for details and registration.

How to provide feedback:

Please use the Consultation Tool available at the consultation page of the public section (accessed below) to provide your comments. Instructions for use are available when you access the Tool. Please note that only comments submitted through the Tool will be considered. All comments will be published on the IAIS website unless an option in the Tool to keep comments confidential is chosen.

Please note that some formatting (eg bullet points) may not be preserved when copying and pasting your comments into the Consultation Tool from other software such as Microsoft Word.