The Chartered Insurance Institute (CII) has set out a plan for sharing vulnerability data across the insurance and personal finance sector, aiming to meet the Financial Conduct Authority’s (FCA) requirements.
In the ‘Unlocking outcomes: data sharing across the distribution chain’ report, the CII called for a move away from just ticking compliance boxes, towards sharing data to improve things for customers.
The CII said common standards are needed to make it easier for firms to share information, which would help people avoid repeating personal stories and get a more personalised service.
This would also help firms build better customer relationships and add commercial value, according to the group.
The recent roundtable included people from Allianz, Association of Financial Mutuals, AXA, Claims Guardians, MorganAsh, FWD and RSA Group.
The report set out a plan for a system where vulnerability data could be shared quickly and securely.
Under this, customers would only need to give permission once for their information to be shared.
After that, different firms would only get the details needed to offer support, not all the sensitive information.
Andrew Gething, managing director at MorganAsh, said: “If Amazon did vulnerability, they’d call it personalisation.”
Gething added that customers are already happy to share personal data with tech and utility firms if they see a benefit.
The CII said many firms are too cautious about general data protection regulation (GDPR), and made clear that explicit consent is not always needed.
They said ‘legitimate interest’ and ‘substantial public interest’ can apply if the aim is to help customers.
Additionally, the CII said it will set up a cross-sector group to develop common ways to define vulnerability, add more material on the topic to professional qualifications and training, publish guidance on how to handle vulnerability data, and carry out research with people who have lived through vulnerability.
Matthew Hill, chief executive of the CII group, said: “Sharing vulnerability data across firms has the potential to improve substantially the experience of customers in vulnerable circumstances.
“We’re making this report available in an effort to drive the vulnerability conversation forward and implement action that meets regulatory requirements and customer needs.”
