Normative Considerations in Data-driven Personalization of Consumer Insurance Contracts

Cristina Poncibò and Piotr Tereszkiewicz (eds), European insurance contract law: the promises and perils of digitalization, Springer International

15 Pages Posted: 24 Mar 2023

See all articles by Przemysław Pałka

Przemysław Pałka

Jagiellonian University in Krakow - Faculty of Law and Administration; Information Society Project at Yale

Katarzyna Wiśniewska

Jagiellonian University in Krakow

Date Written: December 31, 2022

Abstract

In the data analytics society, insurance companies can (potentially) access previously unimaginable amounts of data about consumers, both personal data concerning individuals and statistical data concerning various communities. This chapter asks a provocative question: is this bad? Put in a more intellectually rigid manner, this chapter ponders what uses of data about humans, undertaken by insurance companies when dealing with consumers, should be assessed negatively, and what positively, under various normative theories of consumer law.

The chapter proceeds in four steps. First, we analyze socio-technological foundations – specific technical advances and social practices of technological adoption – that make it possible to collect and analyze vast amounts of consumer data by the insurance companies. Second, we survey the normative considerations, specifically consumer law and data protection law, both from the point of view of how they facilitate widespread data collection and analysis, and how their principles could guide the evaluation of various data-driven practices. Third, we engage in a thought experiment and imagine a world in which insurance companies possess all the possible data about consumer behavior, discuss various ways in which they could use this data, and assess the pros and cons of such uses under different normative theories. Fourth, we distinguish between the legal and the political consideration in a potential legal reform.

Keywords: data, law, personalization, insurance, consumer

Suggested Citation

Pałka, Przemysław and Wiśniewska, Katarzyna, Normative Considerations in Data-driven Personalization of Consumer Insurance Contracts (December 31, 2022). Cristina Poncibò and Piotr Tereszkiewicz (eds), European insurance contract law: the promises and perils of digitalization, Springer International, Available at SSRN: https://ssrn.com/abstract=4391650 or http://dx.doi.org/10.2139/ssrn.4391650

Przemysław Pałka (Contact Author)

Jagiellonian University in Krakow - Faculty of Law and Administration ( email )

Krakow
Poland

Information Society Project at Yale ( email )

127 Wall Street
New Haven, CT 06511
United States

Katarzyna Wiśniewska

Jagiellonian University in Krakow ( email )

Collegium Novum
ul. Gołębia 24
Kraków, 31-007
Poland

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