Insurance Europe Welcomes Digital Tracking Forever

Close up of businessman touching digital screen with fingerClose up of businessman touching digital screen with finger

The latest from Insurance Europe, who welcome an EU digital passport, so that citizens can be tracked and traced for their entire lifetimes. The scheme offers obvious advantages for insurers, who can monitor where peope are, which routes they drive, which public services or healthcare facilities they access, when they go on holiday and much more. It means as data is stacked and analysed, better consumers can be cherry-picked from those who are less well-off, live in high risk areas, don’t have assets to protect, or have long term health conditions.

It could also mean that when someone changes insurer their digital ID is enough for the new company to quote accurately on vehicles used, health status, race, crime record, relationship status, job and much more, without asking any questions online – all pre-filled from the government database. In theory.

As Insurance Europe notes below, a digital passport could also mean that checks on driving ticket status, or compliance in medical, chemical or legal sectors, which is a big part of the Commercial sector risk, can be automated and most of the admin outsourced to the government and the main contractor. That should improve on-site safety and track things like actual driver activity of heavy machinery or plant more effectively. In theory anyway. Here’s the release;

Insurance Europe has responded to a consultation by the EC on its proposal for a European digital identity.

Digital identities are an essential component of the digital single market and of national and European economies. The insurance industry therefore welcomes the EC’s initiative in this area and foresees a lot of potential in the insurance context. In the area of distribution, insurers could imagine the following use cases:

  • The clear and easy identification of potential customers, in particular in the fulfilment of “Know Your Customer” obligations for online distribution channels or compliance with anti-money laundering requirements.
  • In facilitating the possibility to register and access insurers’ online services and enabling easy identification for single sign-on.
  • In ensuring that prospective customers are of legal age and therefore have full legal capacity to enter into a contract.
  • In the context of the professional training and qualification requirements of employees, to demonstrate that relevant legal obligations have been fulfilled. The Digital Identity Wallet could provide a means of demonstrating to relevant supervisory authorities that continuing professional development requirements have been met by the employee.

Regarding the technical implementation of a European digital identity, the following aspects should be considered:

  • There is currently no uniform IT architecture, nor test catalogue for SSI-architecture. However, interoperability of Digital Identity Wallets, particularly with regard to their level of assurance, should be guaranteed.
  • Digital Identity Wallet solutions should also be user-friendly, while maintaining a high level of security and trustworthiness to improve users’ acceptance.
  • In terms of interoperability, user-friendliness and users’ acceptance, users should not be forced to use different wallets depending on their respective scope.
  • There should be no technical restrictions on the use of wallets on mobile devices – wallet solutions should work smoothly across all mobile devices, regardless of their operating system or age.

Furthermore, digital identities could also help to simplify the fulfilment of data protection rights and make them more secure. However, when deciding on a specific technology for the implementation of Digital Identity Wallets, care must also be taken to ensure conformity with data protection legislation (eg data protection by design) and to choose future-proof solutions.

About alastair walker 7798 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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