How bancassurance can overcome data sharing challenges

A varied regulatory environment remains a consistent challenge for data sharing.

Insurance companies and banks are increasingly collaborating to leverage customer data, aiming to offer more tailored products and services. This practice, known as bancassurance, faces challenges due to regulatory requirements and the need for comprehensive data-sharing frameworks, an Arthur D. Little insight warned.

Tackling these issues and implementation obstacles needs an enterprise approach structured around four workstreams:

1. Business: Align strategies, prioritise data-sharing opportunities, and develop clear implementation roadmaps.
2. Legal: Ensure compliance with regulations like GDPR and CCPA, manage customer consent, and develop robust privacy policies.
3. Technology: Deploy appropriate technology stacks to capture and process data securely.
4. Operating Model: Coordinate across teams to identify opportunities and implement solutions.

By addressing these areas, banks and insurance companies can navigate regulatory complexities and maximise the value of shared data. 

“The first challenge that may come to mind when thinking about personal data sharing is how to navigate the complex legal landscape surrounding personal data protection. Banks and insurance companies must comply with regulations, such as the General Data Protection Regulation (GDPR) in the EU, the California Consumer Privacy Act (CCPA) in the US, or similar regulations elsewhere,” it said. 

“These typically require organisations to obtain explicit consent from customers before collecting, processing, and sharing personal data. Additionally, companies must ensure data is securely stored and protected from unauthorised access,” it added.

This structured approach enables them to offer innovative, personalised services to their customers while maintaining compliance and security.