More than three quarters of the UK's biggest insurers instead to give more focus to the way they use data this year, according to new research.
A study of senior decision makers from insurers in the UK, France and Germany by Teradata found that 82% of UK insurers with annual revenues of over £500 million plan to prioritise big data in 2016, according to a report by Computer Weekly.
The research highlighted that UK insurers are ahead of counterparts in France and Germany in relation to their use of 'internet of things' data, such as telematics data in a car insurance context, Computer Weekly said.
Technology and financial services expert Angus McFadyen of Pinsent Masons, the law firm behind Out-Law.com, said that legal and regulatory issues will impact on the way insurers can use data.
"Although there is widespread appreciation of the importance of data within the insurance market, many companies are struggling with how to make the best use of the information they have access to," McFadyen said. "Insurers' approach to big data is an area that the Financial Conduct Authority (FCA) has its eyes on. The regulator has flagged data risks in its risk outlook for the past two years and the fact it issued a request for input on the subject of big data in the insurance market late last year made it clear that it is looking closely at the use of big data in retail general insurance."
"Beyond the regulatory environment, insurers will also be aware of changes to EU data protection rules that will impact on the way they use personal data. The General Data Protection Regulation will contain rules on data portability, profiling and connectivity that will impact on big data across insurance, and every other industry," he said.
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