28 September 2016
The Financial Conduct Authority (FCA) has decided not to launch a market study into the use of Big Data in retail general insurance, concluding overall that the use of Big Data produces benefits for consumers in home and motor insurance. However, the FCA has identified two areas of potential concern: risk segmentation and certain pricing practices. It therefore intends to undertake further work looking at the pricing practices of a limited number of retail general insurance firms. The FCA has also published an occasional paper on price discrimination and cross-subsidy in financial services.