The Texas Department of Insurance issued a bulletin regarding insurer’s use of third-party data.
The bulletin reminded insurers of their responsibility for data harm which could arise when they use third parties.
Bulletin B-0036-20 states, “The Texas Department of Insurance reminds all regulated entities, their agents and their representatives that they are responsible for the accuracy of the data used in rating, underwriting, and claims handling — even if the data is provided by a third party.
“TDI may pursue enforcement action against an insurer if its use of inaccurate data harms policyholders,” the bulletin continued. “Insurers are encouraged to provide policyholders with a way to review and correct data being used by the insurer.”