Last week the Competition and Markets Authority (CMA) published its report into the retail banking market. Among other recommendations, it requires banks to implement “Open Banking”, which means enabling customers to share their banking data securely with third party digital apps that will help the customers find the best products for their needs.
The next day, the Financial Conduct Authority (FCA) published its requirements that when insurers write to customers with a renewal price, they inform customers of the price they paid for their insurance a year ago, and tell the customers that they might be better off if they compared prices and cover levels from other providers. But no mention of a digital solution to help customers make this comparison.
We applaud the CMA’s call for Open Banking apps. We believe that the future for the insurance market lies in a similar direction, with detailed algorithmic analysis of customers’ needs to help customers find the right policies at the right price – what PolicyCastle is set up to provide.