With technology disrupting so many aspects of insurance, insurers are under increasing pressure to update their business model. On one hand, InsurTech startups are attracting young customers and investors with innovation and newness; on the other, tech giants like Amazon are entering the field with immense resources and digital expertise. Established players need to catch up, and they need to do it fast. But is this race towards innovation forcing them to leave privacy concerns behind? In the information age, where do insurers stand when it comes to data privacy and security?<\/p>\n
\u201cShow me your Apple watch, I\u2019ll tell you who you are.\u201d<\/strong><\/h4>\nFor a data-based industry such as insurance, the Internet of Things (IoT) is a gold mine. IoT devices like smartphones, Google Home, or Apple watches are a source of intimate data, giving insurers much better insight into your life than a standard underwriting form. Thanks to technology, insurers no longer need to rely on indirect indicators, such as age or gender. Access to your fitness tracker or a driving app tells them a lot more about your lifestyle, habits, and preferences than any conventional questionnaire. No wonder, then, that some health insurers are already switching over to using IoT devices exclusively for policy underwriting.<\/p>\n
![\"Apple](\"https:\/\/www.insurance-canada.ca\/wp-content\/uploads\/2019\/06\/TurnOnVPN-smart-watch-1706-300x200.jpg\")
<\/a><\/p>\nApple Watch (image courtesy of pixabay.com)<\/p>\n<\/div>\n
All this is great for insurers, but what does it mean for the customer? As critics aptly pointed out, IoT devices are problematic when it comes to data security. Not only are data breaches common \u2013 when they do happen, most IoT companies can\u2019t detect them<\/a> and address the problem accordingly.<\/p>\nThere are ways to secure your IoT devices even if you don\u2019t have advanced IT knowledge. For example, a VPN router essentially protects your entire family from privacy invasion<\/a> by encrypting the internet traffic on all connected devices. This is a good solution for appliances like Google Home that stay connected to your home Wi-Fi. In case of devices on the go, however, you\u2019re exposed to cyberthreat as soon as you leave your internet\u2019s range.<\/p>\nWill you be Facebook friends with your insurer?<\/strong><\/h4>\nThe answer is probably not. But in the state of New York, life insurance companies can legally use your social media to determine premiums<\/a>. And even if you live elsewhere, you can\u2019t necessarily feel completely safe. Most countries have very little legal guidance on social media use for underwriting \u2013 a grey area of which insurers can take advantage.<\/p>\n![\"Facebook](\"https:\/\/www.insurance-canada.ca\/wp-content\/uploads\/2019\/06\/TurnOnVPN-facebook-1706-300x200.jpg\")
<\/a><\/p>\nFacebook (image courtesy of pixabay.com)<\/p>\n<\/div>\n
Similarly to data harnessed from IoT devices, social media activity gives insurers a unique perspective that you wouldn\u2019t share with them in an official questionnaire. They can find out whether you\u2019re likely to engage in risky activities (think twice before posting that skydiving photo or taking a selfie while driving) and how much you care about security (posting holiday pictures while away is a no-no because it immediately lets thieves know your house is vacant). So even if you think your Instagram posts are perfectly innocent, it\u2019s a good idea to revisit the privacy settings. You never know what information might turn out to be useful to third parties.<\/p>\n
The hidden cost of your DNA test<\/strong><\/h4>\nIf you think that DNA test kits are surprisingly affordable, you\u2019re onto something. The real money from DNA testing is in selling the results to third parties \u2013 a popular DNA testing company 23andme has sold its database to a pharmaceutical company, and they\u2019re not the only ones making millions that way.<\/p>\n
![\"DNA](\"https:\/\/www.insurance-canada.ca\/wp-content\/uploads\/2019\/06\/TurnOnVPN-dna-1706-300x200.jpg\")
<\/a><\/p>\nDNA (image courtesy of pixabay.com)<\/p>\n<\/div>\n
Naturally, insurance companies are taking a keen interest in data insights from DNA testing, too. Especially when it comes to life insurance, where potential policyholders are required to disclose any medically relevant information during the underwriting process, insurers are starting to ask about genetic tests as well. Could your results harm your chance of getting lower premiums? It\u2019s not out of the picture.<\/p>\n
Technological advances give insurers opportunities like never before: better underwriting, faster operations, attracting new customers with lower prices. Will they weigh our data privacy against all these benefits, or will privacy concerns be left behind in the race towards innovation?<\/p>\n
About The Author<\/strong><\/p>\nChris Jones is manager of TurnOnVPN\u2019s VPS advocacy blog.<\/p>\n
About TurnOnVPN<\/strong><\/p>\n#TurnOnVPN is a non-profit organization focusing on a free and unimpeded internet for all. We take part in numerous online events, aimed at promoting a safe, secure, and censor-free Internet. For more information, visit www.turnonvpn.org<\/a>.<\/p>\nAll images courtesy of pixabay.com<\/u>.<\/p>\n
![\"Apple](\"https:\/\/www.insurance-canada.ca\/wp-content\/uploads\/2019\/06\/TurnOnVPN-smart-watch-1706.jpg\")
<\/a><\/p>\nApple Watch (image courtesy of pixabay.com)<\/p>\n<\/div>\n
All this is great for insurers, but what does it mean for the customer? As critics aptly pointed out, IoT devices are problematic when it comes to data security. Not only are data breaches common \u2013 when they do happen, most IoT companies can\u2019t detect them<\/a> and address the problem accordingly.<\/p>\n There are ways to secure your IoT devices even if you don\u2019t have advanced IT knowledge. For example, a VPN router essentially protects your entire family from privacy invasion<\/a> by encrypting the internet traffic on all connected devices. This is a good solution for appliances like Google Home that stay connected to your home Wi-Fi. In case of devices on the go, however, you\u2019re exposed to cyberthreat as soon as you leave your internet\u2019s range.<\/p>\n The answer is probably not. But in the state of New York, life insurance companies can legally use your social media to determine premiums<\/a>. And even if you live elsewhere, you can\u2019t necessarily feel completely safe. Most countries have very little legal guidance on social media use for underwriting \u2013 a grey area of which insurers can take advantage.<\/p>\n Facebook (image courtesy of pixabay.com)<\/p>\n<\/div>\n Similarly to data harnessed from IoT devices, social media activity gives insurers a unique perspective that you wouldn\u2019t share with them in an official questionnaire. They can find out whether you\u2019re likely to engage in risky activities (think twice before posting that skydiving photo or taking a selfie while driving) and how much you care about security (posting holiday pictures while away is a no-no because it immediately lets thieves know your house is vacant). So even if you think your Instagram posts are perfectly innocent, it\u2019s a good idea to revisit the privacy settings. You never know what information might turn out to be useful to third parties.<\/p>\n If you think that DNA test kits are surprisingly affordable, you\u2019re onto something. The real money from DNA testing is in selling the results to third parties \u2013 a popular DNA testing company 23andme has sold its database to a pharmaceutical company, and they\u2019re not the only ones making millions that way.<\/p>\n DNA (image courtesy of pixabay.com)<\/p>\n<\/div>\n Naturally, insurance companies are taking a keen interest in data insights from DNA testing, too. Especially when it comes to life insurance, where potential policyholders are required to disclose any medically relevant information during the underwriting process, insurers are starting to ask about genetic tests as well. Could your results harm your chance of getting lower premiums? It\u2019s not out of the picture.<\/p>\n Technological advances give insurers opportunities like never before: better underwriting, faster operations, attracting new customers with lower prices. Will they weigh our data privacy against all these benefits, or will privacy concerns be left behind in the race towards innovation?<\/p>\n About The Author<\/strong><\/p>\n Chris Jones is manager of TurnOnVPN\u2019s VPS advocacy blog.<\/p>\n About TurnOnVPN<\/strong><\/p>\n #TurnOnVPN is a non-profit organization focusing on a free and unimpeded internet for all. We take part in numerous online events, aimed at promoting a safe, secure, and censor-free Internet. For more information, visit www.turnonvpn.org<\/a>.<\/p>\n All images courtesy of pixabay.com<\/u>.<\/p>\nWill you be Facebook friends with your insurer?<\/strong><\/h4>\n
<\/a><\/p>\nThe hidden cost of your DNA test<\/strong><\/h4>\n
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