Data innovation is challenging the traditional role of insurance regulators. Two major dilemmas emerge that insurance regulators and indeed all financial sector regulators face when confronted with how to regulate consumer data:

1. They must tread the balance to achieve positive consumer outcomes, by both enabling data-driven innovation but still protecting consumers from the risks that arise
2. They must protect consumers within their sector from the risks that arise even though they do not have sole regulatory oversight over the collection, storage and use of consumer data, which cuts across society.

This report takes stock of what it takes to regulate for responsible data innovation. New data uses bring opportunities and risks. New technologies mean the collection, storage and use of consumer data have grown significantly over the last decade. The use of data in the insurance industry holds enormous potential to reach new customers, to design better products that offer customers greater value and to enhance operating efficiency.

Thus, the improved use of increasing consumer data can help make insurance markets more inclusive. However, as data proliferates, so do the opportunities for the exploitation of that data for illegal and/or unethical means, which manifests in risks to consumers.