The General Data Protection Regulation (GDPR) for risk mitigation in the insurance industry

Abstract

Purpose: This chapter sets out to lay out and analyse the effectiveness of the General Data Protection Regulation (GDPR), a recently established European Union (EU) regulation, in the local insurance industry.

Methodology: This was done through a systematic literature review to determine what has already been done and then a survey as a primary research tool to gather information. The survey was aimed at clients and employees of insurance entities.

Findings: The general results are that effectiveness can be segmented into different factors and vary regarding the respondents’ confidence. Other findings include that the GDPR has increased costs, and its expectations are unclear. These findings suggest that although the GDPR was influential in the insurance market, some issues about this regulation still exist.

Conclusions: GDPR fulfils its purposes; however, the implementation process of this regulation can be facilitated if better guidelines are issued for entities to follow to understand its expectations better and follow the law and fulfil its purposes most efficiently.

Practical implications: These conclusions imply that the GDPR can be improved in the future. Overall, as a regulation, it is suitable for the different member states of the EU, including small states like Malta.