Maryland Acting Insurance Administration Commissioner Marie Grant reiterated the administration’s support for a bill that would regulate how auto insurers use private passenger vehicle telematic systems. The bill, SB 984, aims to limit the types and amounts of data collected through these systems and prohibits data from being used as a basis to set premiums. Grant highlighted concerns about the lack of options for policyholders to challenge inaccurate telematics data.
The bill’s sponsor, Sen. Alonzo T. Washington, emphasized the need for consumer protections, particularly regarding data privacy and preventing rate hikes based on collected data. Insurance companies, such as State Farm, expressed support for transparency and consent in data usage.
However, there are concerns about the potential misuse of telematics data, with reports suggesting that certain practices could lead to unfair rate increases, particularly affecting lower-income and minority communities. Consumer advocates and experts emphasized the importance of safeguarding sensitive driving data and ensuring genuine consumer consent. The bill aims to address these concerns and improve accountability in the use of telematic systems by insurance companies.
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