Among those laws are many based the privacy regulation

The Impact of Big Data on Insureds, Insurance Coverage, and Insurers • 153

Regulation has many parallels with the portions of the Gramm-Leach-Bliley (“GLB”) Act,18 which applies to financial institutions. Unlike other finan-cial institutions, insurers are also subject to state privacy laws specifically governing the insurance industry. Among those laws are many based on the Privacy Regulation. There are two provisions in the Privacy Regulation that potentially will have an impact on data analytics at insurance compa-nies. These provisions are (1) the requirement that consumers be allowed to opt out of information sharing with nonaffiliated third parties and (2) prohibition of discrimination against consumers who have opted out of information sharing.

154 • Big Data

With respect to insurers, the most significant challenges arising from the utilization of Big Data and Big-Data-driven strategies will be:

2. Andrew McAfee and Erik Brynjolfsson. Big Data: The Management Revolution. Harvard Business Review (October 2012).

3. Sasha Romanosky, David Hoffman, and Allesandro Acquisti. Empirical Analysis of Data Breach Litigation. Draft available at http://ssrn.com/abstract=1986461.

9. The Snapshot device is a small automotive interface device that attaches directly to the On-Board Diagnostics (OBD-II) port in an automobile. It collects and transmits