A new consumer guide has been published by the Association of British Insurers on ‘How Data Makes Insurance Work Better for You’ to explain how insurers currently use personal data.
The guide, unveiled at today’s ABI Data conference shows how relevant information can be used to improve products and services, and sets out simply how the law and regulatory requirements protect customer data.
It stated insurers do not collect any more data than is absolutely necessary, and only stores what is essential to achieving one or more of the following objectives: providing a more personalised products or price, understanding and improving customer service, improving business to benefit customers.
The guide was unveiled at today’s ABI data conference, which looks at how the same amount of data is now created in one day as from the dawn of civilisation until 2003.
Over 5.5bn Google searches are made every single day compared to 10,000 a day in 1998 at the time of launch.
At the conference the ABI has identified three key areas how data can make insurance work better.
• Data can be collected and stored more easily than ever before, meaning that insurers can understand consumer preferences better. This means insurers can create products and deliver services which work better for customers.
• Insurers have always used data to assess risk, but calculations can be increasingly accurate and personal.
For example, connected devices in homes such as ‘smart’ boilers and thermostats can monitor a home, give advance warning of potential risks, and actively help customers manage their likelihood of making a claim.
• In circumstances where it is necessary to make a claim, insurers can wholly focus on helping customers and remove administration burdens by collecting data already available.
For instance, in the future, following a car accident, a smart device in a car could immediately let the insurer know the location and send a recovery vehicle straight away, as well as information on the repairs needed.
Huw Evans, director general of the ABI, said: “The data revolution is one of the defining characteristics of our fast-changing world. This new consumer guide demonstrates how seriously insurers and long term savings providers take their responsibilities.”