EU to introduce tough rules regarding data use and protection

Cyber InsuranceThe European Union is preparing to propose new regulations concerning how corporations use the personal data of Internet users this week. The new rules could have a major impact on companies like Google and Facebook as they would put staunch limits on how they use the information of the people that use their services. Viciane Reading, vice president of the European Commission, a branch of the EU, claims that the new rules are needed to remove the grey areas that exist in Europe’s legal system.

Europe is currently awash with conflicting laws that come from the countries comprising the Union. These laws have made it difficult for companies to operate, forcing them to turn to the Internet to collect data on consumers. Privacy is a major issue for consumers all over the world and companies with free reign over the use of their information have become a popular target for governments. Facebook, for instance, was targeted by both U.S. and European regulators for their treatment of user data and agreed to be subjected to 20 years of independent audits after the U.S. Federal Trade Commission that the company’s use of this information was unlawful.

Privacy is also a major concern for the global insurance industry. With more consumers spending large amounts of their personal and business lives online, the threat of cybercrime has gained prominence. Breaches in security could put the information of millions of consumers at risk, which translates into monetary losses for companies and insurance groups.

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