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Ahead of the arrival of the General Data Protection Regulation (GDPR) this month, brokers across the UK have identified data breaches as the single largest threat to insurers and their clients.
Almost nine-in-10 brokers see data breaches as a key risk to their customers in 2018, new research from insurance and risk law firm BLM has found. The quarterly poll also found that an increasing awareness of data security is the biggest concern for businesses ahead of the GDPR deadline on May 25.
“The proliferation of customer data has been a growing threat for some time now and it’s fair to say the prospect of GDPR being in place will be sending concerns to businesses large and small,” Helen Devery, BLM partner and head of the firm’s broker sector, commented.
“Having recently seen Under Armour and its MyFitnessPal app users subjected to the third largest data breach in history, these findings back the view that data security poses an unparalleled financial risk for businesses in the digital age,” Devery went on to say.
“Indeed, while the investigation into Cambridge Analytica’s use of Facebook data will encourage more prudent data sharing in future, this is a real time issue, and businesses are facing greater pressures than ever before to keep their customers’ data safe.”
Organisations are up against the clock with just days to go before the GDPR’s implementation, and brokers and insurers are feeling the pressure.
Earlier this year, research from Ecclesiastical found that more than two-thirds of brokers felt the GDPR would not deliver any benefits to their business, and 77% believed the new regulation would have a negative impact overall.
However, Andy Fairchild, CEO of Broker Network, told Insurance Business that the national network’s members were well prepared for the regulation’s arrival following months of preparation.
“I think our members feel well-informed, understand the requirements that GDPR places on them, and are focused on implementation,” Fairchild said.
“Areas like GDPR are where the network comes into its own, in my opinion. We’ve provided extensive support for our members to help them through the challenges that GDPR poses. It’s been an important focus over the last year for our compliance team in supporting members.”
