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Insurer Group: Sharing Telematics Data Must Be Opt-In

The Association of British Insurers tells its members that getting "explicit consent" from policyholders is a best practice when sharing telematics data outside core insurance practices.

Via Pinsent Masons, a London-based law firm, the Association of British Insurers has published guidance around how its member companies should use telematics data.

According to an article on the firm's content site,, UK data protection laws require that insurers provide policyholders with "clear and comprehensive information" about how their telematics data will be collected and used.

The article further notes:

The trade body also said insurance firms should take steps to prevent telematics data either being recorded or received by them in the event that customers' policies are terminated.

"When a policy is terminated, consumers should be given the option to have any after-market Telematics Device removed, while the consumer should be able to fully delete any smartphone application," the ABI said in its guidance. "If a policy has been terminated and the after-market Telematics Device has not been removed, the device should no longer transmit data to any Data Controller or Processor."

"If a policy has been terminated and it is impracticable to either have the after-market Telematics Device removed or stop the device from transmitting data, the link between the Telematics Device and the database should be severed such that no additional data received is accessible to any Data Controller or Processor," it added.

Such information could inform potential regulation and self-regulation stateside, as telematics-powered usage-based insurance grows in popularity here.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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