Virtual insurance providers in Hong Kong should make their personal data collection policies more transparent, a consumer watchdog said, noting that information can be stored indefinitely and shared with third parties in certain cases.
The Consumer Council on Thursday said its investigation into the four virtual insurance firms based in the city found they were able to share policyholder data with business partners, third-party service providers and regulators.
“The board reminds users to be aware of the vast variations in the narrative and wording of the terms and conditions between different companies,” said Kyrus Siu King-wai, chairman of the Observer’s publicity and community relations committee.
“The personal information collection statements of all surveyed companies mention that policyholder personal data may be used in direct marketing or promotion.”
Among the four, only Avo Insurance specified a time frame for retaining users’ personal data. The provider can usually keep the information for seven years after the end of the business relationship.
The other three – Bowtie Life Insurance, OneDegree Hong Kong and ZA Life – did not outline a time frame for data retention.
Bowtie and ZA said such data will be retained if it still fulfills the intended purposes behind its collection and will be deleted once it is no longer needed.
But the two insurance providers’ statements broadly set out the purposes of data collection, including for product design, improvement and improvement, and for research and statistical use.
The statements also said the data would be retained to comply with legal obligations and to assist regulatory investigations.
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With OneDegree, the council said the company had stated that “customers’ personal data will be retained for as long as necessary to perform the services and as required by law.”
The council said three out of four companies used chatbots to deal with customer enquiries, but the answers were often the same as those found in online searches.
One also misidentified certain keywords in conversations, such as responding with cancer-related information when asked about e-wallets or home insurance.
The Board also found that three of the companies reserved the right to make changes or updates to their statements with immediate effect and without prior notice.
HSBC Life attracts customers from 46 overseas markets as well as China
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“Contracting an insurance policy may involve a large amount of sensitive personal data, consumers should read the documents carefully before agreeing to the relevant terms and conditions to understand how their data will be processed and used by the insurance company to protect their rights and interests,” said the guard.
The council said the companies’ actions did not breach any privacy regulations.
The Post has contacted the four virtual insurance providers for comment.
The companies were the subject of nine complaints in the first 11 months of this year, with most focusing on product prices and payment methods. The watchdog received three complaints against suppliers in 2022.
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Gilly Wong Fung-han, the council’s chief executive, said companies do not report a significant proportion of complaints against insurance providers.
Traditional insurance companies have been the subject of 268 complaints so far this year, while the figure was 243 for 2022, she added.
Wong said the watchdog decided to focus on consumer experience in the virtual insurance market as the field matures in Hong Kong.
The council cited a pet insurance complaint involving a virtual provider who told a customer a corneal repair solution and pain relievers given to their dog were not essential medications and therefore not covered by the policy.
The case involved about HK$1,800 (US$230) and was resolved when the watchdog intervened, prompting the insurance provider to make a new offer on the claim, it added.
According to the observer, there are no major differences in the regulatory requirements regarding the two types of insurance companies, as the benefits of the insured are not affected if they use a virtual service.
