Insurers should get started on preparing their readiness for the new Consumer Data Right (CDR) regime now, and look beyond just compliance to the opportunities presented to reach retail customers, expert Biza.io says.

Brisbane-based Biza.io is currently working with two energy clients as that sector readies for the CDR, and plans to assist insurers too when the regime applies. Biza clients include Judo Bank, Bank First, Regional Australia Bank, Tyro, Australian Military Bank and TrueLayer.

“We recommend that people start looking at things very early in the piece,” Biza.io Chief Customer Officer Mark Perry tells insuranceNEWS.com.u.

“Don’t leave it to the last six months. Once the deadline for insurance is ratified by the government, it is important insurers understand their strategy, have a project in place and understand the market to deliver the CDR.”

The CDR will be a “big impost” on insurance companies that don’t have a digital strategy and customers signed up on accounts online at the moment, he says.

“That is what we are seeing in energy. I assume insurance is going to be similar – a wide disparity in how people actually engage with their insurance company and the frequency in which they engage,” he said.

“It is not just about how to get data in one place to share – it is how do we engage with our customers digitally and how do we make use of the data.”

Cross selling is emerging as a by-product of the CDR, with energy firms selling telecommunications plans after accessing customer data and using it to create personalised options. Banks are considering selling things like offering energy plans with mortgages, and insurance is likely to see a similar trend for “embedded” sales models.

"All of those things are something to consider. It is not just about compliance – it is about how do I make use of the opportunities where I get access to data on behalf of a customer, and start to use that to deliver new services,” Mr Perry said.

“Things like utilities and so on have the ability to provide that stickiness and create very loyal customers. The whole white labelling thing is a real money spinner for some organisations and that could quite possibly include insurance and superannuation going forward.”

Biza says major issues experienced at banks and energy companies as they migrate to the CDR was where customer data was stored, with some data spread across multiple systems and some systems old and slow and not adapted for the real-time access required by CDR.

He advises a review of where the data is, how it can be exposed to APIs and what is required to uplift the technology, if that is necessary for the CDR.

“That process can take months in some cases so you do not want to be left with four months to go before the deadline and still working through how to get data into one place,” Mr Perry said. “It is a lot of work but the benefits are there for organisations who plan ahead and treat this as not just compliance, but as an opportunity.”