News follows closure of call for information on data use
The FCA may investigate insurers’ use of social media to glean data about customers, The Times reports.
Social media sites such as Twitter, Facebook and LinkedIn allow insurers to see information about their customers that they could not previously access. The data could theoretically be used to underwrite and price business.
Insurers and their investigators are known for using social media to spot fraud. For example Aviva used Facebook to expose a £134,000 ’crash for cash’ scam in 2013.
The FCA’s call for information from general insurers about how they use data more generally closed on Friday.
The call, issued in November 2015, is part of a study into insurers’ data use announced by the watchdog in March 2015 as part of its business plan for 2015/16.
The FCA will publish a feedback statement later this year.
The regulator asked for views on three subjects:
- Does Big Data affect consumer outcomes?
- Does Big Data foster or constrain competition?
- Does the FCA’s regulatory framework affect developments in big data in retail general insurance?