Personal information value chains in the South African insurance industry – an experiment

Abstract

Personal information is being generated and distributed at an increasingly rapid pace. This phenomenon provides both opportunity and risk in equal measure. The flow of personal information allows corporations to use information about what services are needed and where they are needed. Harnessing the power of this big data can potentially transform society for both corporations and their customers. However, personal information could be exploited for private commercial gain without permission being sought or the individual being informed. It is for this reason that relevant legislation has been passed in South Africa in the form of the Protection of Personal Information (PoPI) Act, bringing South Africa on par with international privacy legislation. This research explores both positive and negative aspects of forming personal information value chains in South Africa by means of an experiment within the scope of the South African insurance industry. This experiment demonstrates the lack of value-adding personal information chains within the industry and it also highlights how information is spread and the importance for the legislation to be strictly enforced to counteract the unauthorised leaking of individuals’ personal information.