Facebook and Car Insurance
A car insurer that planned to use Facebook data to set car insurance premiums has had to change its plans after Facebook clarified that such use would violate its privacy guidelines. Admiral Insurance had planned to offer a “first car quote” app to young motorists in the UK. It would analyze Facebook “likes” and posts to determine the driver’s level of risk. The insurer could then offer discounts to less risky customers; the insurer stated that the data would not lead to more expensive premium quotes for drivers considered more risky. However, Facebook’s policy for app developers states that data obtained from Facebook should not be used “to make decisions about eligibility, including whether to approve or reject an application or how much interest to charge on a loan.” The insurer therefore said that its app would launch with reduced functionality.
