Association of British Insurers chairman Paul Evans has warned British car insurers over their use of driver data.
The use of data to monitor driving behaviour is being pushed by insurance companies who state that the analysis allows them to offer better deals which are catered to the individual.
However, some concerns remain over whether such systems, such as telematics, will create excessive premiums for those deemed more likely to claim.
Speaking to the Financial Times, Evans said: "The industry will have to take great care to ensure we’re not creating, because of big data, sectors of society that can’t buy insurance."
Strict EU data protection laws could clamp down on the use of personal data by insurance companies, Insurance Europe, last week stated that strict data rules: "Will likely result in higher premiums for honest policyholders."
Evans, speaking to the FT, suggest that the insurance industry should set up its own code of conduct on how to use data responsibly: "Let’s ensure we don’t fall into any pitfalls."
Mr Evans, went on to say that he believes that a more individualised policy pricing system may be fairer if: "Those who are better behaved [such as safer drivers] are no longer subsidising those who are not."
