Implementing a data portability framework in the insurance sector could help Canadians save $1.1-$3.8 billion in annual costs, according to the “Your Data, Your Control: How data portability can unlock competition and empower consumers” report published by the Competition Bureau.
Canadians will save through transitioning to cheaper insurance plans and limiting the time spent comparing and bouncing between insurance providers. By enabling customers to transfer personal data easily and securely across service providers, markets remain competitive and services and prices are improved.
The European Union, the UK, and Australia are already implementing data portability frameworks.
“Today’s economy is data-driven. Our report shows that Canadians could save a lot of time and money if they had greater control of their own data. With better data portability, Canadians could take charge of their digital lives, and benefit from more competition in industries like banking, insurance, health care and beyond,” said Jeanne Pratt, acting competition commissioner, in a statement.
The Competition Bureau outlined a roadmap for policymakers that highlighted the factors key to the development of a data portability framework for Canada:
- Ensuring that consumer trust in oversight bodies and that they understand how their personal information is used.
- Establishing strong privacy protection, clear consent rules, and high interoperability to facilitate data sharing across digital platforms.
- Drawing from other countries’ initiatives, such as the UK’s open banking and Australia’s Consumer Data Right.
In combination with data portability, interoperability enhances the ability to shift and access information across service providers.
The Competition Bureau surveyed over 3,000 Canadians and researched how people made purchasing decisions. It also compared data portability approaches in other countries to determine how data portability impacted competition, consumer behaviour, and economic growth.
The federal government committed to offering a data-mobility right under the Personal Information Protection and Electronic Documents Act in Budget 2025.