Telematics in Insurance Presentation: National Association of Insurance Commissioners
Auto insurers are increasingly using telematics programs to get consumer-generated driving data, and using that data for insurance pricing. Telematics poses substantial promise for consumers, but also poses major risks related to insurance costs, discrimination, and data privacy. Strong, effective oversight and regulations are needed to make sure telematics benefits consumers and is not misused.
In this presentation to the Consumer Liaison Committee at the 2022 fall meeting of the National Association of Insurance Commissioners, Consumer Federation of America calls on insurance regulators to adopt the following telematics reforms:
1) Laws and bulletins requiring transparency in telematics
2) Strict standards for data collected and used by insurers
3) Transparency regarding the algorithms are that are used in these programs
4) Strong measures to protect consumer privacy, and testing to weed out unfair discrimination and racism.
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