The ABI has produced a consumer guide to inform and reassure consumers about how insurers use data.
The guide includes details on how relevant information can be used to improve products and services, as well as how the law and regulation protect data.
The Information Commissioner's Office recently warned that insurers cannot request patients' full data from GPs, as this breaks data protection laws, but must instead ask for written medical records.
The ABI regards data as being able to make insurance work better by helping insurers understand customers better, personalise insurance and improve the claims process by collecting already available data.
Huw Evans, director general of the ABI said: "The data revolution is one of the defining characteristics of our fast-changing world.
"This new consumer guide demonstrates how seriously insurers and long term savings providers take their responsibilities."
The pdf version of the guide can be found here.
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