Facebook stymies Admiral's plans to use social media data to price insurance premiums
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
A picture shows the Facebook logo at the Facebook office in Berlin, Germany, August 29, 2016. REUTERS/Stefanie Loos
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
LONDON (Reuters) - British motor insurer Admiral
British newspapers said earlier on Wednesday the insurer would analyze Facebook accounts of new drivers for personality traits which show a cautious nature, such as writing lists and arranging a set time and place to meet friends.
Insurers say examining social media could improve the pricing of policies, but critics say this could erode customers' privacy.
Admiral's firstcarquote app was designed to allow new drivers to share social media data in order to get a discounted quote.
"Following discussions with Facebook, the product is launching with reduced functionality, allowing first time drivers to log-in using Facebook and share some information to secure a faster, simpler and discounted quote," the spokeswoman said by email.
"Admiral does not have access to customers’ Facebook data and does not hold social media data to set prices for its customers."
Facebook bans the use of its data on apps to make decisions about "eligibility", such as how much interest to charge on a loan.
"Protecting the privacy of the people on Facebook is of utmost importance to us," a Facebook spokesman said by email.
"We have made sure anyone using this app is protected by our guidelines and that no Facebook user data is used to assess their eligibility. Facebook accounts will only be used for log-in and verification purposes."
Steep insurance premiums for young drivers in the UK have encouraged the use of technology to cut prices, such as telematics - black boxes installed in cars to monitor safe driving.
Some UK insurers also monitor public social media data to help them identify fraudulent claims, industry sources say.
(Reporting by Carolyn Cohn; Editing by Elaine Hardcastle)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Facebook (FB) Slips to Session Low, Down 1.75%
- Iran's supreme court upholds tycoon's death sentence for graft
- Norway government aims to sign 2017 spending plan on Saturday: source
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!