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ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics

Keld Insurance wants to use customer claims data, originally collected to process claims, to build a pricing model that predicts future risk for individual policyholders. Customers were told only that data would be used to administer claims. Which governance principle is most directly challenged by this plan?

Purpose limitation is challenged. Customers were told their claims data would be used only to administer claims, and using it to price individual risk goes beyond that stated purpose. Governance would require fresh consent or another lawful basis before reuse, whereas the other principles are not indicated by the facts.

  1. AData integrity, because the claims data may contain duplicate records
  2. BPurpose limitation, because data is being reused for a purpose beyond that communicated to customersCorrect
  3. CData retention, because the claims data is too old to use
  4. DData availability, because the pricing team may not access it in real time

Explanation

Data protection principles require personal data to be used only for the specified purposes notified when collected. Reusing claims data for individual risk pricing goes beyond the stated purpose. Duplicates, age and availability are not suggested by the case.

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