Conduct Authority’s (FCA) announcement that it is to conduct a market study into the use of big data in the insurance industry, as part of its business plan, Justin Balcombe, UK head of general insurance consulting at KPMG said:
“We welcome the FCA’s announcement that it is to perform a market study into the insurance industry’s use of big data.
"Richer data sets will no doubt provide insurers a greater view of a potential risk, personal or commercial, which in turn may have an impact on price, wording and exclusions. Equally consumers may be able to benefit from a more tailored service, set of products and indeed price.
“We could see innovation emerging that ensures the right risk, right price and product is provided, which in turn may benefit all parties.
“By maximising the use of big data and analytics, insurers will be one-step closer to becoming insurers for the future, who focus on risk prevention and mitigation as opposed to risk management.”
Simon Chan, KPMG Corporate Communications
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.