6533b851fe1ef96bd12aa114

RESEARCH PRODUCT

Credit-Based Insurance Scores: some Observations in the Light of the European General Data Protection Regulation

María Dolores Mas Badía

subject

Cultural StudiesHistoryActuarial scienceEconomics Econometrics and Finance (miscellaneous)Credit historyOrder (exchange)General Data Protection RegulationInsurance policyPolitical Science and International Relationsmedia_common.cataloged_instanceData Protection Act 1998BusinessRisk poolEuropean unionLawCredit riskmedia_common

description

Despite the differences between credit risk and insurance risk, in many countries large insurance companies include credit history amongst the information to be taken into account when assigning consumers to risk pools and deciding whether or not to offer them an auto or homeowner insurance policy, or to determine the premium that they should pay. In this study, I will try to establish some conclusions concerning the requirements and limits that the use of credit history data by insurers in the European Union should be subject to. In order to do this, I shall focus my attention primarily on Regulation (EU) 2016/679. This regulation, that came into force on 24 May 2018, not only forms the backbone of personal data protection in the EU, but is also set to become a model for regulation beyond the borders of the Union. This article will concentrate on two main aspects: the lawful basis for the processing of credit history data by insurers, and the rules that should apply to decisions based solely on automated processing, including profiling.Received: 30 December 2019Accepted: 07 February 2020Published online: 02 April 2020

yearjournalcountryeditionlanguage
2020-04-02Cuadernos Europeos de Deusto
https://doi.org/10.18543/ced-62-2020pp155-186