We live in a new world where every individual is being tracked and recorded to an unprecedented extent! It’s a world in which we are constantly being monitored in some way, often without us realising it.
The huge growth in digital datasets and new analytical tools, capable of extracting ever greater insight from the (big) data, has reinvigorated the Insurance sector as well and it’s expected to deliver many benefits and affect many aspects of both brokers and insurers. Still, there are concerns voiced around big data. Is there a risk that important human values like privacy, confidentiality and free choice are being abandoned for the sake of innovation and expediency?
In a blog post published by Insurance Age, Insurance expert and business ethics consultant Duncan Minty urged that brokers must use information in a way that pleases the Financial Conduct Authority (FCA).
“Big data will transform insurance, providing opportunities for innovative new products and services. And the regulator is seeing similar opportunities too, for identifying sources of consumer detriment. These are powerful transformations, with the potential to deliver a revolution in trust,” he continued.
Minty predicted that regulators such as the Financial Conduct Authority could use predictive analysis data to predict patters of misconduct in the same way insurers can use it to anticipate policyholder behaviour. “A regulator able to address misconduct before it became widespread would be powerful as well as controversial,” he added.
Click here to read his complete blog post “The digital Panopticon and the new power of data”.