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 noted that improvements in risk assessment due to the use of big data will offer clear benefits to consumers such as more accurate risk pricing and increasingly affordable products for many consumers. While more accurate pricing could result in an increase in risk segmentation and insurance becoming unaffordable for certain groups of insureds, so far there is sign that this would be the case but instead insurers have every incentive to offer attractive insurance products for all segments of the population.
Insurance Europe believes that the risks identified in the ESA joint discussion paper can be adequately addressed by the existing legislation.
Insurance Europe encourages ESA to keep monitoring the developments in the area of big data analytics and continue the dialogue with all stakeholders, including the insurance industry.