Other Do insurance companies share info?

Lee Fields

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Do insurance companies share info?

It seems odd to me that they would but just before my car insurance comes up for renewal, I get a rise in the number of cold calls from car insurance companies. The same thing happens with my house insurance.

Is there a another reason for this?
 
Insurers do share some info on claims. The cold calls are most likely from previous enquiries made by yourself to these companies where you gave contact details & renewal dates. This info is retained for future callbacks/follow-up letters etc.
 
As well as this, some employees leaving one company have been known to bring a contact book/disk with them. This can be used by them with another company or sold on.
That's the free market for you!
 
Information to prevent fraud is shared.

Paddyman - if this happened, the regulator would be interested!
 
Happens alls the time ravima. More on the corporate side than personal though in fairness!
 
it is totally unethical and in breach of all regulator guidelines. it is also in flagrant breach of the data protection acts.

In my humble opinion, the company using the data could be prosecuted for using the info, the company from whence it came could be prosecuted for letting the data be stolen and that is what it is and the person who stole it, as well as giving all professional insurance staff a bad name, is liable to be banned from trading by the regulator.
 
It's dealt with in such a way that it nevers comes to that. E.g. The perspective clients never acknowledge that it has happened. So who is to report it that can substantiate the claims? Not justifying the practice but just letting you knows these things widely happen!
 
Do insurance companies share info?

It seems odd to me that they would but just before my car insurance comes up for renewal, I get a rise in the number of cold calls from car insurance companies. The same thing happens with my house insurance.

Is there a another reason for this?
Companies are very unlikely to share renewal details with their competitors as they might lose business they want to keep. I also don't really buy the 'taking the database when an employee leaves' possibility - can't see it being worth it for car insurance. Brokers might do it but I just can't see the big companies loading up their databases with stolen renewal details. A more plausible reason might be that, over the years, you have contacted various companies and brokers looking for quotes and/or moving insurer - and they all kept your details so they could contact you at the relevant time each year.
 
But that would also be in breach of the Data laws unless that particular consent was sought and granted, and that's very unlikely... i.e consent must have been explicitily sought to retain the details on file for marketing purposes.
 
Brokers walking away with data bases and reselling happens.

People telling untruths or trying to defraud insurance companies happens all the time but the insurers don't just sit there and let it happen.

Regarding contact on renewal - how many forms do you come across which ask what month your car / house insurance is renewed?
 
It is more likely you looked for quotes in previous years and the companies know your renewal date.
 
Yes, but we have data protection laws for a reason.

I don't know of many forms that ask for renewal dates.

If you ring a company for a quote they are only entitled to use your information for that purpose, .. they aren't permitted to retain your info on file unless they explicitily ask for permission.

The OP could legitimately ask the cold calling uinsurance companies where did they get his details?
 
He could and he could also tell them if they were cheaper than his current insurer, that under no circumstances would be prepared to pay less given that he was not happy as to how they got his details.
 
It may depend on state law, but in most U.S. states, yes. If you apply for insurance with a company, they can check your record and see what claims you have had with other companies.
 
There is no database that is out there that they all look at. Frankly they would be happy to have you try to pull off what you want because they would be more than happy to accept the premium payments. The problem comes in at claim time, Insurance is an indemnity contract which means that they will put you back to the same financial place you were prior to claim. What this means for those that try to pull of some fancy stuff is that on any one claim you have you must submit to the companies and when it comes to claim time do not think that the companies do not talk behind closed doors. If you have two disability income claims both to replace your $5000 per month income they would know that there are two companies on the claim argue over who is going to cover most of it based on inception date of the policy. delay the claim payment then eventually pay you a total of $5000 based on their findings over who pays what (60% co A 40% co b etc.)
 
I agree with Joe, If I ring a company for a quote I am not giving them permission to store those details for them to ring me again a year later hawking their wares.
 
Hi all,
I think they call you for some confirmation. But in my knowledge no insurance company share personal information of their customer.

All proposal forms for life assurance ask you to sign a declaration permitting them to seek information from medical professionals and other life assurance companies.

Life assurance companies share information on customers all the time subject to receipt of confirmation of this declaration.

I'd imagine in a claims situation, general insurance companies follow similar protocols seeing at they wouldnt want to all be paying out on the same risk.



www.CheaperLifeAssurance.ie
 
hi you said no insurance companies share info did you read the data protection commissioner annual report for 2010?
 
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