When It It’s Not Brexit, It’s GDPR
We wrote about the impact of Brexit on British insurance. We concluded our lens was still muddy. And we would have to wait a while for certainty about passporting. Would multinational insurers in London still be able to trade in the EU, or would they have to move there to avoid new branches in every member state.
Brexit is another pain. We have to implement it by 25 May 2018 because we will still not yet have brexited. Potential fines for non-compliance can be as much as 4% of global company turnover. We could be in for a rough time, judging by the mood in Brussels over Hungary refusing to take more refugees.
The General Data Protection Regulation, GDPR wants to protect the sanctity of personal information. It believes this data is the individual’s private property, and they ought to be in full control. This has not always been the case though. Post Online goes as far as saying we should have done much more collectively than we did before.
The website goes on to claim, “Home and motor insurers face an estimated bill of £100m, as a result of the impact of the General Data Protection Regulation.” Ian Hughes, CEO of Consumer Intelligence believes, “Insurers who do not act quickly will have to pay out more in the future … Currently the vast majority of insurers are not compliant with the new regulations, and the industry needs a serious rethink in the way it engages with customers.”
A scant 32% of drivers want their motor insurers to hold their information. In future, they may not be able to contact 68% of their customers to upsell new business. This is in stark contrast with 30% of new business reaching them this way currently.
We do not have household insurance figures to hand. However, we suspect something similar because the customers come from the same population.
Post Online think corporate insurers “will be hit the hardest”, as they claw back lost business from comparison sites that sell leads for up to £45 a time. While smaller companies will be in the same position, they will at least be on more level terms. However, the real winners could the disruptive cost comparison sites. They could be facing an unexpected bonanza of £100 million without much extra effort.
There is not a lot of time left over to harvest as many permissions as we can. We have to get our opt-in messages out soonest, and make the proposition sound as attractive as we can as we can. 25 May 2018 will come knocking on the door soon.
At Auger, we do whatever it takes to bring you breaking news and interpret it. We’re with you from start to finish no matter what the system throws out.