The Chartered Insurance Institute (CII) has warned data alone won’t prevent future consumer detriment.
This is in response to the FCA and Bank of England announcing proposals for data reforms.
Keith Richards, managing director of engagement for the CII, said: “It is vital that the regulator has the right data to inform rules but data alone isn’t enough to prevent future consumer detriment.
“It is vital data is accompanied by human insight to ensure developments in the market are thoroughly understood.
“Digital breadcrumbs can’t replace the knowledge gained by speaking to those who assist consumers.
“There is also a danger that a desire to streamline data collection might mean that different assets might be treated as the same, simply to create large ‘buckets’ for counting in a standardised way across the sector.
“This, in turn, might lead to an over-simplified view of the market.
“I am pleased the regulator will work with firms to ensure data collection is less burdensome.
“The regulator needs to ensure the market understands how this information will be used.”