We are seeking views, supported by examples and evidence where possible, of how Big Data is affecting (and is likely to affect) consumer outcomes and competition in the retail general insurance (GI) sector. We are also seeking views on whether our regulatory framework affects developments in Big Data or unduly constrains innovation in the interest of consumers.
Why are we publishing this Call for Inputs?
In our Business Plan 2015/16[1], we announced our intention to review how insurance firms use Big Data.
The use of Big Data is developing across financial services. Our focus on retail GI reflects how extensively data is already used in the sector and the significance of the sector for consumers. We want to understand how the use of data by insurance firms has developed in recent years and how this might change in the near future. We recognise that the use of Big Data brings both benefits and risks for consumers.
We are seeking views, supported by examples and evidence where possible, of how Big Data is affecting (and is likely to affect) consumer outcomes and competition in the retail general insurance (GI) sector. We are also seeking views on whether our regulatory framework affects developments in Big Data or unduly constrains innovation in the interest of consumers.
Call for Inputs: Big Data in retail general insurance [PDF][2]
Key focus areas of this Call for Inputs
This Call for Inputs will focus on three key topics:
- Does Big Data affect consumer outcomes?
- Does Big Data foster or constrain competition?
- Does the FCA’s regulatory framework affect developments in Big Data in retail GI?
In looking at consumer outcomes, we are also interested in how Big Data might affect consumers who may not be able to access standard insurance products, including consumers with disabilities or other vulnerable consumers.
What are the next steps?
Please send your comments to us using our online form by 8 January 2016.
Alternatively, you can send them to [email protected] or write to:
Big Data Call for Inputs
Strategy and Competition
Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
In addition to gathering views from stakeholders with the Call for Inputs, through December 2015 to early 2016 we will be meeting with firms, consumer groups, industry bodies and other interested parties, and seeking data from firms to help inform our next steps.
We will use the findings from the Call for Inputs together with the evidence gathered from our meetings with stakeholders to determine our next steps. These could include a market study, adjustments to policy or guidance or another form of intervention, if appropriate. We expect to publish a Feedback Statement detailing the findings from the Call for Inputs and our next steps in mid-2016.