Data portability frameworks deliver time and cost savings for Canadians

A study by the Competition Bureau in Canada has revealed that data portability frameworks, such as Open Banking and Open Insurance, could help Canadians save time and money.

In its study ‘Your Data, Your Control: How data portability can unlock competition and empower consumers’, the Bureau used the insurance sector as a case study to estimate the value of data portability for consumers.

It found that a data portability framework in the insurance sector could save Canadians between $1.1 billion and $3.8 billion in annual costs.

This includes up to $1.57 billion in financial savings from switching to less expensive insurance plans and an estimated $2.26 billion in value from time savings, as Canadians spent less time comparing and switching insurance providers.

The findings are based on a survey of 3,046 Canadians using a hypothetical tool called Open Insurance.

The Bureau reported that most Canadians said they would use a tool like Open Insurance if it offered savings and concluded that “clear financial or time-saving benefits drive adoption”.

It also found that “knowledge and trust” are key to adoption, on the basis that consumers who felt more informed are significantly more likely to participate in Open Insurance versus consumers who believe there is risk and so were “dramatically less willing to join”.

The report provides a “roadmap” for policymakers which suggests that for the creation of a Canadian data portability framework, consumers need to trust oversight bodies and understand how their personal data is used.

It also sets out the need to provide “strong privacy protection, clear consent rules, and high interoperability to allow data sharing between digital platforms”, and to learn lessons from other jurisdictions, such as Open Banking in the UK and Australia’s Consumer Data Right.

Jeanne Pratt, acting commissioner of competition at the Competition Bureau, said: “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.”

Further reading: Canadian government commits to implementing Open Banking in Budget 2025