Insurance companies may have a big challenge on their hands when it comes to identifying vulnerable insurance customers, as new research from data analytics company Consumer Intelligence reveals three quarters struggle to understand or feel overwhelmed by information provided by their insurer.
In contrast, the national survey of 1,000 consumers discovered that only 13% of respondents would consider themselves vulnerable by the FCA definition: “someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
The contrast highlights the scale of the challenge that insurance brands face in identifying vulnerable customers.
Prior to completing the survey, only 52% knew of the term, but once explained 48% said they knew someone who they would class as a vulnerable customer.
Ian Hughes, CEO of Consumer Intelligence, said: “Financial services companies have a real challenge ahead. Recognising vulnerability is a key part of ensuring customers are treated fairly but identifying these customers is very difficult, especially when customers are unaware of their own vulnerability.
“At Consumer Intelligence, we believe data analytics can play a big part in the identification of vulnerable customers, and we are currently examining ways to help insurers achieve this.”
The research goes on to reveal that the youngest age groups (18-34) are the most likely to feel overwhelmed, with 80% sometimes or often having trouble understanding information from their insurer. In contrast, the over 55s claim to have the greatest level of understanding, with 32% saying they have no problem with understanding, despite including the most vulnerable age demographic — the over 85s.
“One of the key issues for vulnerable customers is feeling overwhelmed by the information they are provided with. It is vital that companies strive to provide content that is easy to understand and entirely transparent,” concludes Hughes.
Notes to Editors
1 fca.org.uk
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About Consumer Intelligence
Consumer Intelligence conducts consumer surveys and benchmarks price and service performance providing unique insights into competitor pricing and customer experiences, their attitudes, opinions and behaviours. For more information, visit the web site www.consumerintelligence.com
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