Connecticut Insurance Department Issues Guidance on Big Data Use by Insurers | Hinshaw Privacy & Cyber Bytes - Insights on Compliance, Best Practices, and Trends
The State Department of Connecticut has issued a notice reminding all companies and individuals licensed by the department to use technology and big data responsibly and transparently, and in full compliance with federal and state anti-discrimination laws. Given the potentially transformative nature of big data, the department reiterated regulatory concerns on the following three general issues: Internal data provision : How big data is used by insurers as a precursor or part of algorithms, predictive models, analysis processes, data collection, product design, marketing, sales, management, rating and underwriting activities, regardless of whether the parties use their data or have their own algorithms and / or processes for the joint development of algorithms, models or processes from third-party developers or providers. The department defined the big data ecosystem as broad, diverse, and rapidly evolving from a variety of sources including consumer intelligence, social m