Big data main theme for the FCA in 2016

02 Mar 2016

Technology and big data are the key focuses for the FCA, Financial Conduct Authority, in 2016.

Simon Green is director of general insurance and protection at the Financial Conduct Authority (FCA). For the year 2016 he pronounced an incredible "big" change. He said that the regulator would continue to focus on technology, big data and appointed representatives going forward.


In a lecture on the FCA's view of the general insurance sector at Lloyd's of London, Green stated: "2016 is going to be a year of significant change across the market from a regulatory and technological perspective."
The regulator recently published a call for input on big data and Green noted it was seeking information and views from the sector to get a "broader look on how insurers are using big data and the possible risks it will create".


Technology
He further stated that this was a period of social change in terms of how consumers interact with financial products.
"Technology will materially impact the sector going forward, with new firms venturing into the insurance space with peer-to-peer platforms and start-ups," he said.


"An example of this is the innovation hub which was set up to encourage competition through innovation."
However, he mentioned that there were more challenging technological risks for established firms including "underinvestment in IT structures, legacy systems and a lack of integration following mergers" having a significant impact on a firm's capability to protect their information.
Challenge


According to Green, the regulator also sees cyber security as a key issue going forward.
He further noted that the Insurance Act, the Enterprise Bill and the European referendum would impact the future of the insurance sector.
In his speech, Green also said that "the challenge for the FCA is to have an efficient, sustainable approach to regulation, acting only where we need to, pushing the industry to do better".
He added: "Our overall strategy for the insurance industry is to work with you to enhance trust and confidence across the sector, by working towards consistent consumer outcomes."