Data protection is not barrier to supporting vulnerable clients, says CII

New guidance from the Chartered Insurance Institute on supporting vulnerable customers aims to give professionals confidence without using data protection as an excuse not to act.

The Data Privacy for Customers in Vulnerable Circumstances guide, launched today (June 17), sets out how customer vulnerability-related data can be managed in compliance with UK data protection requirements and the Financial Conduct Authority’s consumer duty .

Matthew Hill, CII chief executive, said: “Too often data protection is used as an excuse not to do the right thing.

“Our new guidance should give insurance professionals the confidence to make data work for better consumer outcomes”.

The guide has been developed for compliance officers, data protection specialists, operations managers.

It clarifies how firms can collect, store and use vulnerability-related information responsibly, the CII aims to support a more consistent, confident and customer-centred approach across insurance and personal finance.

Robert Bell, co-author of the guide and director at RB Compliance Consultancy, said: “We live in a world where health and support needs are increasingly openly discussed, as reflected in expanding regulatory expectations meaning firms have to be laser focused on supporting customers who find themselves in vulnerable circumstances.

“It is also important to use this data to amend the product design as part of the expectations of the consumer duty.

“However, none of this is possible without data and this is where many organisations believe they run into a barrier — UK GDPR.”

Bell said this problem was identified by the CII which believed a “clear set of standards” would help firms overcome the issue.

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