Guide will show how information can also be used to improve products and services
The ABI is launching a consumer guide aimed at reassuring customers about how insurers use personal data.
The ABI said the How data makes insurance work better for you guide, will show how relevant information can be used to improve products and services, and outlines how the law and regulatory requirements protect customer data.
The ABI said: “Insurers recognise there are some concerns amongst consumers about how businesses will use their personal information, and therefore are using this guide to reassure customers how their data will be used.
“With 90% of the world’s data generated over the last two years, the guide looks at how insurers can use the rapidly growing wealth of personal data available to improve their services and products for the benefit of customers.
”In addition to reassuring customers that they are committed to using data responsibly, insurers want to engage consumers by highlighting some of the hypothetical ways in which the provision of insurance may be changed by digitisation and the increasing availability of data.”
The ABI says the conference is set against the ongoing data revolution in which the same amount of data is now created in one day as from the dawn of civilisation until 2003.
Additionally, more than 5.5bn Google searches are made every single day, compared to 10,000 a day in 1998 at time of launch, while 90% of all the world’s data has been generated in the last two years.
However, the number of global internet users is still under half of the world’s population.
The ABI said the three areas that data can make insurance work better are: understanding consumers better, personalising the insurance experience and improving the claims process.
ABI director general Huw Evans 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.”