Britons lose confidence in insurance company data protection

Recent research undertaken by DQM Group indicates that public confidence in the ability of insurance companies to keep personal data secure has fallen away in the past year.

The data protection company says that little research work has been done to evaluate levels of trust specifically in relation to customer data security.

To fill the gap, DQM has examined these issues in both private and public sector organisations and compared the results with fieldwork conducted by Pitney Bowes in 2008.

According to the study, only 32.6% of respondents claimed they trusted the insurance industry to look after their personal data.

This compares to 62% in 2008 and represents a move from above average to below average, when compared with all sectors.

DQM suggests that the fall in confidence “could have a serious impact on business and contribute to customer defection at a time of low competitive pressure”.

The firm’s managing director, Adrian Gregory, comments: “These findings highlight the urgent need to improve standards … in order to start the process of standards improvement, however, organisations need a means of benchmarking their current personal data security standards against an industry and best practice average.”

He adds: “Unless widespread improvement in data security standards takes place in the next few years, across both private and public sectors, then commercial organisations will stand to lose custom, and government will miss efficiency targets, all because the public is increasingly less willing to risk handing over their personal details.”

Norwich Union Life is the insurance name most likely to be connected to data protection breaches.

Eighteen months ago, the Financial Services Authority fined the company £1.26 million for failing to manage customer data adequately.

Some customers were the victims of crimes such as identity theft as a result of the failures.

Tags: confidence, data protection, DQM Group, fallen, public, research

Category: Insurance News