On 22 March, Insurance Europe responded to the European Supervisory Authority (ESA) consultation on a joint discussion paper on the use of big data analytics by financial institutions. Insurance Europe shares the ESA's view that technological innovations are changing people's lives faster than ever before. Yet, big data analytics and the use of predictive modelling are not new concepts in insurance. Actuaries are already using large data sets to identify correlations and predict future events, such as mortality tables, to price life insurance products.
Insurance Europe believes that the risks identified in the ESA joint discussion paper can be adequately addressed by the existing legislation and encourages ESA to keep monitoring the developments in the area of big data analytics and to continue the dialogue with all stakeholders, including the insurance industry.
A link to Insurance Europe's response is here.