Britain’s Financial Conduct Authority (FCA) has called for submissions on the use of Big Data in the retail general insurance sector.

Director of Strategy and Competition Christopher Woolard says Big Data has the potential to “transform practices and products across financial services”.

Although its use is developing across financial services, the FCA will focus on retail general insurance.

“We are starting our work on Big Data by seeking to better understand how insurance firms are using data and how this may evolve in the future,” Mr Woolard said.

“We are keen to talk to consumers and industry to understand Big Data’s impact on firms’ decisions, and in turn the effects this is having on consumers.”

The FCA’s “call for inputs” will focus on three key questions: does Big Data affect consumer outcomes? Does it foster or constrain competition? Does the FCA’s regulatory framework affect developments in Big Data in retail general insurance?

Submissions close on January 8. The FCA will publish a feedback statement later next year.