A recent decision of the Office of the Privacy Commissioner of
Canada (the "Commissioner"), finding that analyzing
a customer's credit rating does little to help counter
insurance fraud, will seem shocking to many in the insurance
industry. In making this decision, the Commissioner has denounced
something that is common industry practice in assessing the
legitimacy of claims.1
Details of the Decision
This decision arises out of an Ontario motor vehicle accident
claim. The Commissioner ruled that The Personal Insurance Company
("The Personal") violated a senior citizen's privacy
rights when it accessed his credit rating in the course of handling
his motor vehicle accident claim for Section B benefits. The
Personal asserted that this practice was employed to assist in
detecting and preventing fraud. However, in response to the
decision that The Personal failed to establish how the collection
and use of credit scores is necessary and effective in preventing
and
