What does this cover?
The FCA has joined the Big Data discussion with a 'Call For Inputs On Big Data' in the retail general insurance sector (the "Call").
In an FCA press release this month, the organisation set out that its Call followed an appreciation that Big Data is likely to have a major impact upon, and the potential "to transform practices and products across financial services". They are keen to find more out about how firms use and intend to use Big Data; how Big Data usage might evolve in the future within the industry; how consumers may be impacted and, consequently, what work the FCA may need to consider to address Big Data.
The Call for Inputs will focus on three key topics:
- 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?"
The FCA are interested in responses and feedback (comprising of views, supported evidence and examples of big data use) from both consumers, industry firms and relevant interested bodies. The Call will close on 8 January 2016 and the findings will be used to inform the next steps in this area for the FCA (which could involve a Market Study or new guidance).
To view the FCA press release, please click here.
To view the FCA's Call for Inputs document, please click here.
What action could be taken to manage risks that may arise from this development?
Financial service companies should consider responding to the FCA's Call before the closure of the Call for Inputs on 8 January 2016.