Risks and Benefits of Data Portability: The Case of Black Boxes in the Italian Motor Insurance Market

Donatella Porrini, Marta Infantino and Paola Monaco

Mercato Concorrenza Regole, 2024, issue 3, 459-477

Abstract: Over the last decade, Italy has enacted many legal reforms to promote the installation of black boxes in motor vehicles for insurance purposes. The rationale behind this reform is the idea that black boxes allow for a more precise personalization of insurance products and reduce the risk of fraud. The last of these reforms focuses on data portability and gives policyholders the right to obtain some of the information collected by the black box in the previous year and to share it with another insurance company. The reform allows virtuous customers to transfer their reputation from one insurance company to another in order to reduce switching costs and to combat lock-in effects, thereby improving competition in the insurance sector. While data portability may indeed have beneficial consequences at the contractual level, its overall impact on the insurance market is much harder to predict. The aim of this paper is therefore to test the impact of black box data portability on the motor insurance market and to assess the risks and benefits of the reform from both the legal and the economic perspective.

Keywords: Data portability; Black boxes; Motor insurance; Data protection law; Artificial intelligence (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1434/116744 (application/pdf)
https://www.rivisteweb.it/doi/10.1434/116744 (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mul:jhpfyn:doi:10.1434/116744:y:2024:i:3:p:459-477

Access Statistics for this article

Mercato Concorrenza Regole is currently edited by Giuliano Amato

More articles in Mercato Concorrenza Regole from Società editrice il Mulino
Bibliographic data for series maintained by ().