The head of the Financial Conduct Authority (FCA) has reminded insurance providers of the need to be careful in their use of big data to ensure some customers are not unfairly penalised.
Speaking at the Association of British Insurers' annual conference, chief executive of the regulator Andrew Bailey noted the ability to capture and convert information into insight has led to a "revolution" in how businesses approach data. However, he cautioned that there need to be boundaries on how this is used to ensure that the technology serves everyone effectively.
The use of big data can allow insurers to determine premiums for consumers at a much more individual level, rather than pooling them into wider risk groups. This puts more … Read moreRead More