The Chartered Insurance Institute (CII), a professional body for finance professionals, has launched a cross-sector Vulnerability Data Sharing Taskforce.
The taskforce, which includes representatives from insurance, personal finance, technology and academia, aims to develop practical solutions to reduce the number of repeat disclosures required of vulnerable customers.
The CII has shared 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.
At its first meeting in May, the taskforce 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. It concluded that the greater challenge is the absence of common standards, shared terminology and practical mechanisms across the distribution chain.
Matthew Hill, chief executive of the CII Group, said: “Customers should not have to disclose sensitive information repeatedly. By bringing together expertise from across insurance, personal finance and beyond, this taskforce will help develop practical, sector-wide solutions that strengthen consumer trust and improve outcomes for people in vulnerable circumstances.”
The taskforce has established three working groups, focusing on creating a vulnerability data dictionary, market adoption and engagement, and data standards and governance.
The next phase of the programme will focus on developing the vulnerability 'data dictionary', progressing the supporting data standards and governance framework, and validating the approach through a practical insurance use case.
The CII is the London-based professional body which awards the Chartered Financial Planner designation among other designations. It has 122,000 members.
The Personal Finance Society (PFS) is the CII’s sister organisation. It has nearly 40,000 members and aims to drive professional standards in the financial advice and associated sectors.