Our Positions | Big Data

For the insurance industry the use of data, including the use of large sets of data that may be referred to as “Big Data,” is nothing new. Insurance is a data-driven enterprise. It always has been and it always will be as companies use large quantities of data in innovative ways to improve products and services for the benefit of consumers.

Keeping in mind that increased use of data is tied to insurers competing for business, the potential benefits include lower costs as increased use of data makes systems more efficient, and higher customer satisfaction as insurers use data to improve processes and match outcomes with consumer expectations. Increased use of data in underwriting can help insurers identify risk factors within a larger group that may allow the insurer to offer coverage to certain risks at a lower price than if the data were not available. Use of data to identify fraud can help keep overall insurance costs down.

NAMIC Position

NAMIC has stressed the benefits of insurers’ use of new data and use of traditional data in new ways and has favored exploration of the issues that have emerged, including potential issues for concern, while cautioning against making assumptions regarding potential negative consequences. NAMIC acknowledges there could be concerns about quality of data or misuse of data, but insurers operating in a competitive environment are generally incentivized to avoid such issues in their use of data. Additionally, any concerns that may arise in this area can be addressed under the existing market regulatory structure by applying time-tested principles and standards to new practices.


The NAIC established a Big Data Working Group in 2016 to explore policy implications of insurers’ expanding use of data. Originally working under the auspices of the NAIC’s Market Regulation and Consumer Affairs (D) Committee, in 2017 the Working Group was placed under the newly created Innovation and Technology (EX) Task Force.

New NAIC Privacy Protections Working Group Rolling Up Its Sleeves

December 13, 2019 During this kick-off meeting of the Privacy Protections (D) Working Group, NAIC counsel Jennifer McAdam presented on a number of existing laws and models, including the history and content of the NAIC privacy models and privacy-related... Read more

House Panel to Eye Role of Privacy in Competition

September 9, 2019 The House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law will hold a hearing Sept. 12 titled “Online Platforms and Market Power, Part 3: The Role of Data and Privacy in Competition.” Appearing before the subcommittee will be... Read more

Big Data Working Group Moves Forward With State Ahead Concerning Predictive Modeling Data and Beyond

April 17, 2019 The Big Data Working Group met at the NAIC Spring Meeting in Orlando and continued to discuss a logistical framework at the NAIC to handle and assist states on large data sets and predictive modeling filings. NAMIC has previously commented in... Read more

CASTF Moves Forward With Predictive Modeling White Paper Revisions

April 17, 2019 The NAIC Casualty Actuarial and Statistical (C) Task Force discussed the exposed draft of its Predictive Modeling White Paper at the NAIC Orlando Spring Meeting on April 6. The task force initially exposed the white paper late last year for a period of... Read more

Big Data Working Group Briefed on State Resource Need Survey, Review of Information Sharing Laws

November 28, 2018 NAIC staff members briefed the Big Data (EX) Working Group on two initiatives related to the NAIC's support of states to better understand and process complex filings using large data... Read more


Jonathan Rodgers
Director of Financial and Tax Policy