18th May 2022
Insurance Europe has published its response to a consultation by the European Commission(EC) on its proposal for the Data Act.
Insurance Europe welcomes the proposal as it sets out common rules on the use of data generated by connected devices, including how to access and share it. The industry also welcomes an enhanced data portability right, which, among other things, looks to improve technical standards for access to and the portability of data generated by individuals.
Robust sector-specific legislation on access to in-vehicle data is, however, needed to provide the confidence and incentive independent service providers require to invest in new data driven services.
In principle, trade secrets and business sensitive information should be excluded from data sharing obligations. The mere risk of having to disclose this data could hamper innovation, with negative consequences for the development of the European data economy. As a minimum, the Data Act should be clearer on the nature of the specific measures necessary to preserve the confidentiality of trade secrets.
Moreover, the objective of the Data Act should be to create a level playing field between all players in the data economy. It is, however, unclear why unilaterally imposed contract terms that are considered unfair shall be null only if the recipient is an SME.
The proposal also sets out an obligation to make data available to public bodies in the case of public emergencies or in situations where public sector bodies have an exceptional need to use certain data. The reasons for government access should, however, be more strictly defined in the text.
The relationship of the Data Act with other legislative provisions, especially the General Data Protection Regulation, should be further clarified.
Finally, the industry welcomes the Data Act’s provisions on cloud switchability which will help to establish a more competitive market for cloud computing services. Insurers have reported difficulties concerning the concentration of cloud service providers, which results in a lack of competition in the market and an imbalance in the negotiating power between the parties.
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