Insurers Beware – Be Blasé About Big Data at Your Peril

When the new FCA chairman Charles Randell voiced his opinion about big data and artificial intelligence (AI) in July this year, it certainly upset the apple cart for a number of individuals across the insurance sector. Mr Randell highlighted his concerns and proposed future regulations for insurers and other financial services firms using the aforementioned technologies. As digital transformation takes hold of every industry, the exploration of big data and AI and its integration into insurance services and products has also increased. Consequently, players in the sector should be prepared to reconsider the AI basics and clarify the ground rules to ensure their customers are not left exposed to the mismanagement of personal data or a security breach. It is important that insurance companies take this challenge seriously so they themselves can avoid another scandal such as that experienced with Cambridge Analytica.