Erie Insurance: Monitoring technology in the car insurance market and the issue of data privacy

Abstract

The influence of big data affects all aspects of life, including insurance. With car insurance, companies have the ability to go beyond the traditional driving history and current usage questions to customize policies for each holder, especially with the introduction of monitoring technology that is either installed directly into the car or accessed via cell phone. Most consumers who are interested in usage-based insurance coverage are willing to sacrifice any concerns with data security for the trade off of financial savings, but car insurance companies must be aware of the ethics of their actions and work to protect user data. Erie Insurance Company is specifically analyzed in this article as an example.