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Big Data - Transforming Insurance

  • United Kingdom
  • Insurance and reinsurance - E-briefings
  • Financial institutions - Insurance market

14-12-2015

FCA publishes Call for Inputs into Big Data in retail general insurance

The FCA has issued a Call for Inputs (“Cfi”) into Big Data in retail general insurance (“retail GI”). The Cfi follows the FCA’s commitment in its 2015/2016 Business Plan to conduct a market study into how insurance firms use Big Data and begins a fact-finding exercise intended to help the FCA better understand how the use of Big Data has developed in recent years, and how this might change in the future.

The FCA has decided to focus on retail GI given the significance of the sector, the importance of data to this sector, and the potential for Big Data to alter the way risk is assessed. Whilst the scope appears to be very broad, the FCA has said that in order to frame its analysis it will focus on private motor, home and contents insurance.

The FCA is asking for information in relation to three topics:

1. Does the use of Big Data affect consumer outcomes?
2. Does the use of Big Data foster or constrain competition?
3. Does the FCA’s regulatory framework affect developments in Big Data and retail GI?

In the meantime, the FCA will in any event engage with the industry through meetings, discussions and by sending out information requests. The FCA’s findings are due to be published by mid-2016 at which point the FCA is expected to confirm whether or not it intends to launch a market study and on what terms.

Stakeholders have until 8 January 2016 to submit a response. Experience shows that early engagement by stakeholders presents a real opportunity to influence the direction of the FCA’s work and ultimately its outcomes. You should therefore consider the potential impact
this could have on your business and how to engage in a way that will best assist your organisation.

Click here to read the full briefing here

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