Case 1: Allprovince Insurance

Allprovince Insurance is a company that offers many types of insurance to its consumers,
including life and vehicle insurance. It charges its consumers exorbitant insurance fees. To track
client purchase records from third parties and get information about their browser history relating
to health, medical, or doctor appointments to determine the appropriate insurance values. It also
uses purchase details, such as customer-specific car position and speed data obtained from their
vehicle's on-board GPS system, to track the likelihood of occurrences. Based on this information,
Allprovince Insurance analyses their risk and boosts insurance quotes for customers who have a
high risk of a claim. This procedure breaches research ethics. It violates consumers' privacy
without their knowledge that is termed as an illegal activity.
Data science, analytics, cognitive computing, and AI influence everyone as their reach and
relevance grow. The mere fact that something is technologically feasible does not guarantee that
it is appropriate, lawful, or ethical. Data science professionals and management must face these
difficulties. Analytics poses a number of pertinent legal, privacy, and ethical considerations. All
uses of statistic that they retrieve from the third party to apply a different price to the customers.
Because the insurance value varies from person to person, there is a breach of public
responsibility. If the person does not possess a car and has no online history of medical and
doctor appointments, the insurance value may be affected. All province creates health insurance
price based on health issues or getting information from the GPS system of their vehicle and the
price will be higher for those people who drive at high speed. A person who drives through an
accident-prone location on a daily basis is covered by high-risk claim insurance. This is highly
harsh because the individual must have been,
There are several ethical issues that the company may encounter one of them is Privacy and
Confidentiality Protection. Violating a customer's privacy and confidentiality can have legal and
ethical ramifications for healthcare practitioners and professionals. The Health Insurance
Portability and Accountability Act safeguard patients' medical information. Increases in data
breaches and smartphone usage emphasize the continued need to grasp this ethical dilemma.
The process of data mining, particularly data on persons, raises serious ethical concerns. When
deciding whether to alert a person that their information is being gathered for future data mining,
businesses face an ethical quandary. Allowing users to opt-out of data collection may jeopardize
a company's ability to compete in the market. A company must decide whether a lack of ethical
concern would result in a loss of customer trust and anger. Companies that use data mining
techniques must act ethically by comprehending the ethical issues that arise during deployment.
After reviewing all of the facts, it is clear that there is an ethical issue of prejudice. That
individual who owns a car and does online searches related to medical concerns and health may
have to pay more for insurance than that person who does not own a vehicle and has no internet
history linked to medical and health. In this case, the person who actually has more car-driving
experience and no health issues, and by searching keyword related to health they may get higher
price compared to those who are a fresh driver.
Another issue, for example, The information might be used to discriminate against people based
on their ethnicity, sexual orientation, or religious beliefs. This type of data mining is considered
immoral and unlawful. Individuals must be protected from any improper use of their personal
information. Before providing the information, they must understand how it will be used, why it
will be used, what components of the information will be taken, and what ramifications this
action will have. Individuals must be clearly informed and taught about the reasons for and risks
associated with utilizing their information in this manner.
Web mining, when used in a business environment and applied to specific sorts of data, may help
firms construct detailed customer profiles and acquire marketing insights. However, technology
may jeopardize fundamental ethical ideals such as privacy and uniqueness. Web mining makes it
hard for an individual to limit the exposure and sharing of personal information on their own.
When internet users' activities are recorded and evaluated without their knowledge, privacy
issues arise. Privacy and uniqueness should be protected and safeguarded to guarantee that
people are evaluated and treated equitably. People should be aware of the dangers and have
regular discussions about this ethical consider.
Privacy means different things to different people. In general, privacy refers to the right to be
alone and to be free from intrusion into one's personal life. In many countries, privacy has long
been a legal, ethical, and societal concern. The privacy and legal issues that may develop are key
components of the growing dispute in data mining. The numerous applications of data mining
raise privacy problems. Data mining may be used to extract data and find numerous facts and
relationships about customers, as well as develop connections based on this extraction, which
might jeopardise client privacy and information.
There is a huge number of smartphone users are unaware that their personal data is being
collected. Many applications gather data from users' phones as they move from one cell tower to
the next, from GPS-enabled devices that transmit users' location, and from phones transmitting
data at Wi-Fi hotspots. Major software developers claim to be extremely cautious and concerned
about their consumers' privacy. However, it's remarkable to see how much data is available with
just one smartphone. Google collects a large amount of user data in order to present consumers
with proactive information such as their calendars, preferred restaurants, upcoming events, and
so on. Every analytics programme developer must address privacy problems.
People rely greatly on insurance companies for their own and their families protection. Insurance
companies provide medical insurance, vehicle insurance, travel insurance, and other sorts of
insurance. When insurance businesses use unethical practices, such as utilizing people's data to
provide personalized interest rates to clients, customers often lose trust in the organization and
may choose to leave. They may see a major drop in clientele as well as financial losses as a
result. To run a successful business, it's always a good idea to follow ethical regulations that
protect consumers' privacy and don't use their data for monetary gain.
Allprovince obtained customer-specific data from a third party in order to get health-related data
such as which hospitals were visited and other health-related data in order to determine if
customers are at a higher risk of developing health problems. That would be the basis for
insurance rates. When there are more health issues, insurance rates increase. Regardless of
whether data is collected legally or illegally, it is always desirable to produce and source data
ethically. Allprovince insurance should adhere to its ethical principles, and the privacy of its
consumers should never be risked in order to profit from them.
There are many ethical aspects that Allprovince can take into consideration to avoid potential
ethical issues they may encounter. Perhaps it's because our trade group actively promotes ethical
behavior. Perhaps it is because many of us understand that ethical business practices make good
business sense. Anything that might cause physical or mental harm to participants should be
avoided or minimized. Inform people about any possible risks before they participate. Maintain
your neutrality and objectivity. Do not let your personal biases or opinions get in the way of
gathering facts.
The company should go into detail after taking the data from the third party and analyze and
consider more potential issues. For example, they should combine the result from customer-
specific search-engine browser history with medical records to apply a reasonable price to a
customer, or maybe they can require a medical check or background check with car insurance.
This is fair to people who accidentally search health-related keywords and drivers who have real
experience and no health issues.
This case study reveals that the Allprovince corporation violated various ethical rules in order to
make money. To conduct its business, it should follow ethical legal procedures. The company
might devise numerous remedies to this challenge, such as asking clients' permission before
using their data and notifying them of how their data would be used to benefit them. Many
businesses and government agencies, understandably, require the use of data mining as part of
their jobs; however, if this information is being managed effectively. Data mining, for example,
might assist some firms target the right market.
To summarise, Allprovince Insurance breaches the most important ethic of privacy by not
obtaining the people's consent. Instead of breaking the ethics, Allprovince should request consent
or a medical procedure from its clients before to providing insurance. It develops discrimination
based on vehicle speed and the region in which the customer is driving. This should not be used
to increase the cost of insurance. The organisation should make all facts available to its clients so
that they are fully aware of all terms and conditions and to manage its business, it must follow
ethical legal standards. The firm may devise numerous remedies to this challenge, such as
seeking clients' permission before using their data and notifying them of how their data will be
used to benefit them.
Reference:
Sharda, R., Delen, D., & Turban, E. (n.d.). BUSINESS INTELLIGENCE, ANALYTICS, AND DATA
SCIENCE: A
Managerial Perspective. Pearson

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