Insurance data privacy & ethics - how far does the market need to go?

Earlier this year I spoke at the National Association of Insurance Commissioners (NAIC) Insurance Summit, and after receiving a question about the ethical use of consumer data and if insurance companies should be allowed access and use consumer data for rating, underwriting, marketing, and claims processing. I simply asked, how quickly and accurately do you want your claim paid? How quickly do you want your application processed, receive a quote and policy? I explained the same data is used to process and pay 98 percent of all insurance claims across all lines of business is the same data used for analytics to identify, prevent, and deny questionable or fraudulent claims. The same consumer privacy advocates want claims paid more efficient, electronically and with a better customer experience. Consumer data is used to validate claims the vast majority of the time then it is used to deny a claim.