What's happened
Insurance companies are leveraging driving data collected from smartphones and cars to set rates for customers, raising privacy concerns. Verisk has stopped selling detailed driver behavior data, while popular apps like Life360 and GasBuddy are providing driving data to insurers through an Allstate-owned company, Arity.
Why it matters
The exploitation of driving data by insurance companies raises significant privacy concerns and questions about consent. Customers are unknowingly sharing detailed driving behavior, impacting insurance rates and potentially compromising privacy. This practice highlights the need for greater transparency and control over personal data usage.
What the papers say
According to The New York Times, Verisk has ceased providing 'Driving Behavior Data History Reports' to insurers, following concerns about privacy and data collection. The NY Post reports that smartphone apps like Life360 and GasBuddy are sharing driving data with insurers through Arity, without clear disclosure to users. Business Insider UK highlights the growing trend of insurers using driving data from apps to assess risk and set insurance rates.
How we got here
Auto insurers have long sought ways to monitor driving behavior to better assess risk and determine insurance rates. The use of smartphone apps and data from car manufacturers has provided insurers with a new avenue to collect detailed driving data, sparking privacy concerns among consumers and privacy advocates.
Common question
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In logic, mathematics, and computer science, arity ( ) is the number of arguments or operands taken by a function, operation or relation. In mathematics, arity may also be called rank, but this word can have many other meanings. In logic and philosophy...