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Allianz anticipates commercial benefits from EU Data Act

EditorAmbhini Aishwarya
Published 10/17/2023, 06:18 AM
© Reuters.

Germany's leading insurer, Allianz (ETR:ALVG), is optimistic about the impending "EU Data Act," which is expected to provide substantial commercial benefits from car data utilization. The act aims to manage data from networked devices, including automobiles, and is believed to favor insurers.

On Tuesday, during the 11th Allianz Motor Day, Klaus-Peter Röhler, a board member of Allianz SE, discussed the potential of the EU Data Act to make connected vehicle data usable for owners, road safety, and digital innovation. He supported the act for its potential to enable individualized and risk-adjusted insurance premiums, improved accident prevention, and smarter claims management.

Röhler highlighted that the act allows vehicle owners to demand that manufacturers transfer collected data to third parties. He emphasized the innovative possibilities of vehicle data use such as addressing parking-space issues in cities and improving air quality and transportation safety.

Detailed vehicle data could enable unique insurance offers and services like automatically recording damage extent during an accident through position data and crash sensors evaluation. This would allow Allianz to quickly arrange towing services, rental cars, spare parts orders, and workshop appointments.

Röhler also explained how car data allows Allianz to offer risk-adjusted insurance offers based on driving style and safety system usage. He highlighted the importance of this data in future scenarios where autonomous and AI-supported systems control vehicles.

An Allianz survey revealed that a majority of drivers across five European countries are willing to share their car data with insurers if they receive comprehensive service support in return. However, Röhler emphasized the need for fair pricing from vehicle manufacturers for transmitting this data to third parties.

Röhler stressed the absence of a legal framework specifying how vehicle data can be technically used by all market participants, despite the EU Data Protection Act providing a legal basis for transferring it. In response, Allianz called for full transparency about collected vehicle data, a standardized minimum data set, a regulated marketplace, an independent data trustee to ensure secure data exchange, and fair prices for data transmission to third parties.

The auto industry association (VDA) has concerns over unrestricted data sharing, recommending "authorization management" of car data should remain with manufacturers. Insurers countered with a neutral data trustee proposal. The EU Commission plans to amplify user rights by enabling the transfer of vehicle data for maintenance and other services to a selected company.

Röhler confirmed that the new law fosters innovation and competition. He envisages future cars guiding drivers to free parking spots in inner cities and automatically recording accident details in real-time. Services like towing service notification, loaner car reservation, workshop appointment scheduling, and spare parts ordering would be achievable.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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