Context
The CII is to lead cross-sector data-sharing taskforce to develop vulnerability data sharing standards. This will build on the CII’s work to support customers in vulnerable circumstances, in accordance with the FCA’s Consumer Duty expectations.
Key points to note and next actions
- The aim of the taskforce is to 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.