We all know that the Internet has changed our world and data is king. But did you know:
- The same amount of data is now created in one day as from the dawn of civilisation until 2003
- Over 5.5bn Google searches are made every single day, compared to 10,000 a day in 1998 at time of launch
- 90% of all the world’s data has been generated in the last two years, yet the number of global internet users is still under half of the world’s population
No wonder people worry about how their data will be used.
Now the Association of British Insurers (ABI) have issued a consumer guide to reassure customers about the use of their personal data. Titled ‘How Data Makes Insurance Work Better for You’ the publication shows how relevant information can be used to improve products and services for customers. There is also information about how the law and regulatory requirements protect customer data.
The ABI are keen for us to know that Insurers recognise there are some concerns amongst consumers about how businesses will use their personal information and they are using this guide to reassure customers about its’ use. 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.
Data – helping to improve insurance
The ABI have identified three key areas where data can make insurance work better:
- Understand consumers better: data can be collected and stored more easily than ever before, meaning that insurers can understand consumer preferences better. This means insurers can create products and deliver services which work better for customers.
- Personalise the insurance experience: Insurers have always used data to assess risk but calculations can be increasingly accurate and personal. For example, connected devices in homes such as ‘smart’ boilers and thermostats can monitor a home, give advance warning of potential risks, and actively help customers manage their likelihood of making a claim.
- Improve the claims process: in circumstances where it is necessary to make a claim, insurers can wholly focus on helping customers and remove administration burdens by collecting data already available. For instance, in the future, following a car accident, a smart device in a car could immediately let the insurer know the location and send a recovery vehicle straight away, as well as information on the repairs needed.
Huw Evans, ABI Director General comments: “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.”