Most insurers have their own vulnerable customer policies in place, plus there are are KYC regs from the FCA to consider of course. But as consumers move between brands there is a case for agreed guidelines on sharing data. Here’s the word from the CII;
The Chartered Insurance Institute (CII) has launched a cross-sector Vulnerability Data Sharing Taskforce to help reduce the number of repeat disclosures required of vulnerable customers across the distribution chain. It brings together representatives from insurance, personal finance, technology, academia, and professional bodies to develop practical solutions.
The initiative responds to concerns that vulnerability-related information is not consistently shared across the financial services distribution chain. Customers are often asked to repeat sensitive information as they move between insurers, brokers, advisers and service providers, creating frustration and potentially reducing support.
The taskforce met for the first time in late May to discuss how improved information sharing could help firms provide more consistent support and reduce the need for customers to repeatedly explain their circumstances.
It was noted that UK GDPR should act as the vehicle for responsible data sharing where there is a lawful basis, transparency, purpose limitation, and appropriate governance. The greater challenge is the absence of common standards, shared terminology and practical mechanisms across the distribution chain. Experian, MorganAsh and FWD Research shared their existing approaches to vulnerability data sharing.
Three working groups have been established, focusing on creating a vulnerability data dictionary, market adoption and engagement, and data standards and governance. Their work will centre on practical use cases and measurable customer outcomes.
Matthew Hill, Chief Executive of the CII Group, said: “Customers should not have to disclose sensitive information repeatedly. By bringing together expertise from across insurance, personal finance and beyond, this Taskforce will help develop practical, sector-wide solutions that strengthen consumer trust and improve outcomes for people in vulnerable circumstances.”
The next phase of the programme will focus on developing the vulnerability data dictionary, progressing the supporting data standards and governance framework, and validating the approach through a practical insurance use case. Together, these outputs will help build the evidence base needed to support wider market adoption and improve outcomes for customers in vulnerable circumstances.
The Vulnerability data sharing Roundtable summary report is available here.
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