Proposed rules to give consumers more control over their data may have repercussions for underwriters, the Insurance Council of Australia (ICA) warns.

In a submission on the proposals, ICA says the definition of consumer data must be worded so it doesn’t include value-added data that results from modelling by insurers.

“For the industry, this data is not just an incidental part of the business, but forms the very foundation upon which products are designed and priced,” it says.

“Underwriting data is a source of intellectual property and should not be included in the definition of consumer data, particularly if such data will be required to be released to third parties including competitors.”

A Productivity Commission report released last year recommends introduction of a “comprehensive right” allowing consumers to access their data and demand it be sent to another party, such as a new doctor, insurance company or bank.

It would also give them the right to opt out of data collection.

ICA says access to transaction and claims history data, or detailed insurer risk data, is unlikely to help consumers make more informed decisions when buying cover.

“Individual insurers will use different data and have varied assessments of risk depending on their underwriting models. From a consumer’s point of view accessing risk data that will differ from insurer to insurer is unproductive.”

ICA says it working on initiatives to improve consumer decision-making at point of sale and will this year review product comparability options to help increase understanding of coverage differences between products.

“From a general insurance point of view, consumer knowledge about their own risks and the different options available in the market for covering that risk represents the most valuable information to a consumer,” it says.

Natural hazard, building standards and mental health data should be designated “national interest data sets”, according to the submission.

Broadly, ICA agrees it is critical for governments and businesses to maintain a social licence for the collection and use of data.