Research has shown the customers confidence in data collection is fragile
Motor insurance customers have concerns about their data being misused after collection, a CMA study has shown.
The research, commissioned by DotEcon and Analysys Mason, looked at the way consumer data is collected and used in the motor insurance, clothing retail and games applications industries.
It found that throughout the motor insurance industry, data was routinely collected, and through this practice firms could gain better customer targeting ideas and fraud prevention. Customers could also receive more personalised services and relevant advertising.
However, these benefits were only realised when firms used the data in transparent ways.
Most consumers had concerns about loss or misuse of data and showed a lack of understanding about how and why it was collected from them.
CMA chief executive Alex Chisholm said: “We found widespread concerns about how such data is collected, incomplete awareness amongst consumers and hence a fragile level of trust – all of which has the potential to undermine benefits in future.”
“We will play an active role in the future regulation of consumer data and will work with other regulators to track new developments and ensure an integrated approach to tackling specific problems.”