Vehicles collect – often unnoticed – more and more data about traffic, the driving behaviour of the driver and the performance of the car itself. That begs the question of who that information actually belongs to: from the manufacturer, the government or the driver of the car? Insurers advocate letting consumers be in charge of their own data. The Association also makes proposals to make this data available for useful applications through an independent, non-commercial body.
Current
Background
Insurers and data
In order to be able to offer modern products and services , insurers need information. Until recently, insurers only worked with data from the past, provided by insured persons. By collecting data by the vehicle and being able to share it in real time , insurers can now have much more accurate data that is also up-to-date. Insurers use this type of data to continue and further develop products and services:
- data to be able to make a good risk assessment (information about the safety of the vehicle, the weight, the age);
- data on the driving behaviour of the insured;
- a signal as soon as an insured person is involved in an accident or the vehicle has a breakdown and information about the damage to the vehicle, so that assistance can be started immediately after the vehicle has been stranded;
- data on the driver's driving behaviour;
- data on the commuting of insured persons in order to be able to offer mobility solutions.
It goes without saying that insurers can only have access to this data after the consumer has permission. After all, it is the consumer who should be in control of this data.
>> Read more about how insurers handle your data
Who owns vehicle data?
The starting point for insurers is that the customer is at the wheel. The consumer is in charge of almost all vehicle data. For example, the consumer must be able to freely decide where and with which parts the car is repaired, where the car is insured and what happens to his or her data. This freedom creates competition between suppliers and a car industry in which companies keep each other sharp. The consumer benefits from this.
Event Data Recorder (EDR)
The police are still investigating causes through time-consuming analyses and witness statements. We believe that a competent authority, such as the police, should increasingly be able to use data from an Event Data Recorder (EDR) to draw up accident reports. In many cars such an EDR is already present, in the US it is even mandatory. The Association advocates making an EDR mandatory in the Netherlands as well. If the EDR is read directly by an independent body, such as the police, the data about the moment shortly before and at the time of the accident are reliable. If insurers gain access to this data via the police, they can quickly form an opinion about the liability. Both insured persons and victims benefit from a fast claim settlement. The smooth determination of liability is an essential part of this.
In the view of the Association, it must in any case be prevented that the data can be read or changed immediately after an accident by a party that has an interest in it. An EDR records a number of things every 5 seconds and automatically removes them after 5 seconds. In the event of an accident, therefore, the 5 seconds preceding it are available and usually also the 5 seconds after an accident.
Cyber risk
A new risk for vehicles is cyber risk. As more vehicles are connected to the roadside or to other vehicles via the internet, the risk that a vehicle could be hacked increases. Various videos circulate on the internet in which you see how cars are remotely controlled by a hacker. Although preventive measures considerably limit this risk, partly because the government will hopefully set high requirements for security, the risk will never completely disappear. The Association supports the recommendations of the Cybersecurity Council for certification, quality marks and access requirements, transparency among manufacturers suppliers and awareness.
Starting points data
Insurers receive data from their customers. For example, about common causes of water damage and the extent of this damage. Or traffic accidents and the places where they happen. What is different today is that we go from historical data to real-time available data. This does not change the principles that insurers use when it comes to data. These principles are:
1. Freedom of choice
It is important that the consumer can choose from various providers for maintenance and repair and for his insurance. For this it is important that the permission to make data available is decoupled from the sale of the vehicle. The manufacturer of a computer also does not get access to all the applications for which you use your computer. To improve the car as a product, the manufacturer needs a very limited set of data. Data that concerns location, driving behavior and so on are not necessary for this. Not even for a possible recall. It is also questionable whether the consumer is sufficiently aware of all the conditions he signs for and whether he can properly assess the consequences.
2. Privacy
Insurers want to offer freedom of choice, so that it remains possible for people to purchase an insurance product without having to hand over personal data about, for example, their driving behavior. It is sometimes said that in the future privacy is only possible for the rich. However, if we look at the driving behavior insurances that are currently offered in the Netherlands, we see a different picture. There are various providers for driving behavior insurance in the Netherlands. Some of these insurances are cheaper but others are more expensive than regular insurance. Specific target groups such as young people can be cheaper with a driving behaviour insurance.
3. Purpose binding and data minimization
A consumer is only asked the question about the provision of certain data if it is necessary for the provision of a service or the purchase of a product. If an insurer wants to offer the consumer a product or a service such as roadside assistance, certain dates are necessary for this that the consumer can be asked for. In this way, the consumer can better compare the provision of the data and the purchase of the service or product. And at least as important: better decision-making whether all requested data is necessary for the service or product. For example, the continuous handing over of location data is necessary with mileage insurance in order to be able to calculate the number of kilometers. With roadside assistance insurance, however, the provision of location data is only relevant to pass on the breakdown location.
4. Transparency
Insurers are transparent with their customers in the data they use and the purpose for which they use it. They offer customers the possibility to view the data and to change it in case of incorrect registration. They also provide information about the storage, transfer and destruction of data. All this information shall be provided actively and in a manner comprehensible to consumers.
5. Availability of data via independent body
Insurers believe that the data from vehicles should only be made available through a reliable, independent, non-commercial body. This authority must receive readable data from all vehicle manufacturers and, with the consent of the consumer, provides this data to third parties such as insurers, repairers or car manufacturers themselves. In this way, first of all, the interests of the consumer are best safeguarded. In addition, this system ensures a level playing field for all parties and stimulates competition.
6. Level playing field
Such a system has been common for insurance information for years. Under the law, insurers make their information available free of charge to the National Road Traffic Agency (RDW). The RDW can then decide to provide this information (against payment) to third parties. In this way, a level playing field is created for parties that want to offer services to consumers for whom certain insurance information is required. With the income from making the information available, the RDW finances this system.