Use of investigation firms sparks privacy complaints against insurers

Complaints against the insurance industry filed with the federal privacy commissioner increasingly involve the covert collection of personal information by private investigation firms, the commissioner said in her annual report.
Of the 350 complaints filed with the Office of the Privacy Commissioner of Canada (OPCC) between Jan. 1 and Dec. 31, 2007, 10% were filed against the insurance industry.
“We understand there may be a need for covert collection of personal information where other less privacy-invasive efforts have failed,” Jennifer Stoddart, privacy commissioner, wrote in her report.
“However, a key concern about this type of investigation is the risk that innocent third parties may be captured on covert video surveillance tapes,” she continued. “Few of us would like to be videotaped in a bathrobe on our front step simply because we happen to live next door to someone under suspicion of insurance fraud.”
The OPCC is working with both insurance and private investigation organizations to find a balance between their need to conduct their business and individuals’ right to privacy, she continued.
Part of the solution, Stoddard suggested, may be for insurance companies to establish detailed contracts with investigative firms to ensure the parameters of surveillance are clearly spelled out.
As well, investigative firms need to develop specific policies regarding surveillance, including the videotaping of third parties.