Data privacy and protection are major issues for insurance carriers, especially when collecting customer data on their websites. As people become more aware of data security breaches, they are also increasingly concerned about how companies use their personal information.
To begin, it's essential to understand the basics of data privacy and security. Data privacy is a way of protecting personal information from unauthorized access or use. This includes collecting customer information, storing it securely, and using it for legitimate business purposes only.
What Are the Types of Privacy?
Primarily, there are 3 types of data privacy:
1. Personal Privacy: This refers to information that is collected and used by an individual or organization to identify a specific person, such as name, address, social security number, and credit card information.
2. Anonymous Privacy: This refers to data that is not associated with any identifiable individual or group but may still provide insights into the behavior or preferences of a certain group.
3. Pseudonymous Privacy: This refers to data that is linked to a specific individual but does not reveal their identity. It tracks user behavior and preferences without revealing any personal information.
Top Data Privacy Concerns for Insurance Carriers
Cyber Insurance carriers are often at risk of facing data privacy issues, lest they adhere to the necessary consumer data protection laws. Here are some of the top concerns for insurance carriers:
1. Pixel-Related Data Privacy: Pixels are small pieces of code placed on websites to track user activity, such as page views, clicks, and conversions. Insurers must ensure they have the necessary permission to collect customer data through these pixels.
2. Social Media Privacy: Insurance carriers must also know how they use customer data collected from social media platforms like Facebook and Twitter. They must ensure that customer data is anonymized and not used for marketing purposes without consent.
3. Mobile Privacy: As more customers use mobile devices to access insurer websites, carriers must be aware of the additional security risks this poses. They must have a secure system to protect customer data transmitted via mobile devices and encrypt any sensitive information stored on these devices.
Impact on Insurance Carriers and Policyholders
From the outlook, data privacy may seem like a hindrance to insurance carriers. But it is quite beneficial for them and their customers. Not only will adhering to data protection regulations help insurers build trust with their customers, but it will also protect customer information from malicious actors and hackers. Additionally, insurers can avoid hefty fines from regulatory bodies by keeping customer data secure.
But that's just the tip of the iceberg; carriers can also use pixel data to accomplish the following within the framework of data privacy:
Gain insights into customer behavior, which can help them better understand their customers and deliver more tailored products.
Offer customers more personalized experiences and services.
Improve their marketing campaigns by tailoring them to specific customer segments.
Other benefits of pixel data for insurance carriers include:
Improved website performance
Better customer engagement
More efficient operations
But despite the availability of different types of privacy protection, this doesn't stop policyholders from having concerns and implications for their privacy. For example, they may be worried about their data being used to target ads or personalize services. Therefore, insurers must be transparent and explain to policyholders how their data is used and why it's necessary.
Future Trends and Emerging Technologies
As data privacy becomes increasingly important, insurers turn to emerging technologies to ensure customer data is secure. Here's a breakdown of the top three trends and innovations to watch out for in 2023:
Blockchain. Many insurers are taking an interest in blockchain to access a secure and immutable ledger for collecting and storing customer data. This allows insurers to track and verify customer information while maintaining its privacy. Furthermore, the distributed nature of blockchain makes it difficult for malicious actors to access sensitive information.
AI-Based Security Solutions. AI-based solutions such as machine learning can help insurers identify and detect anomalies in customer behavior, detect fraud, asses risks, etc. By using predictive analytics, insurers can alert customers to suspicious activity or potential data breaches. This helps them protect customer data while enabling them to deliver personalized services.
Data Privacy Audits and Certification. Insurers must regularly audit their systems to ensure customer data is secure. This includes verifying that the data is being used for legitimate purposes and that measures are in place to protect customer information. Additionally, insurers can pursue certification from organizations like the International Organization for Standardization (ISO) to demonstrate their data privacy and security commitment.
Trava Is Your Go-To Data Privacy Partner!
Data privacy has become a critical issue for insurance carriers. Not only do they need to meet regulatory requirements, but they also have to ensure customer trust and loyalty. By leveraging the latest technologies and trends like blockchain, AI-based security solutions, and data privacy audits, insurers can protect customer data, earning them more trust and increasing their margins.
At Trava, we help carriers meet their data privacy obligations while delivering a delightful customer experience. Our team of experts will collaborate with your organization to identify areas of improvement and develop a tailored data privacy strategy that meets your customers' needs. Schedule a demo today to learn more about our services!