Putting customers first makes good regulatory sense and good business sense. And we believe putting vulnerable customers first should be at the heart of any business model. By helping you understand vulnerable customers, understand the relevant risk and regulatory advice, and get actionable insights,
we hope we can help you create better services and get better outcomes.
The FCA first defined a vulnerable customer in 2015 as:
“Someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.”
It went on to identify four key drivers of vulnerability in guidance published last year, and further explained:
“Vulnerable consumers may be more likely to experience harm. In many cases, this risk of harm may not develop into actual harm. But if it does, the impact on vulnerable consumers is likely to be greater than for other consumers.”
Ultimately this is about people, and there is no tick box matrix that will encompass every permutation of personal human circumstances. It would be a red herring for insurers and brokers to fixate on a neat and tight definition.
A more helpful way to think about how to identify vulnerable customers is to look at how their circumstances affect their decision making and engagement with financial services and from there assess what care they should be afforded to ensure they do not suffer financial detriment or distress because of other life events.
Vulnerable customers may have lower understanding of financial products and the way they are sold, the benefits and mechanics of shopping around at renewal, and they may be digitally excluded. They are less likely to be engaged customers who read and react to insurance communications. Brands should consider how different vulnerabilities translate into the best way to serve customers in sales, renewals and claims processes.
“Putting customers first makes good regulatory sense and good business sense. We believe putting vulnerable customers first should be at the heart of any insurance business model.”
Ian Hughes, CEO at Consumer Intelligence
Vulnerable customers may have lower understanding of financial products and the way they are sold, the benefits and mechanics of shopping around at renewal, and they may be digitally excluded. They are less likely to be engaged customers who read and react to insurance communications. Brands should consider how different vulnerabilities translate into the best way to serve customers in sales, renewals and claims processes.
Firms such as insurers and financial service providers have a responsibility to ensure that they offer appropriate support and fair treatment of what are
termed ‘vulnerable customers’. Vulnerable customers are individuals who are deemed to be more at risk of ‘detriment’ due to their personal circumstances for a range of reasons, including short-term, long-term, or permanent emotional, mental, physical, financial or social circumstances.
NUMBER OF VULNERABLE CUSTOMERS DOUBLES IN WAKE OF CORONAVIRUS
The number of Brits who identify as vulnerable customers has doubled in a year as the coronavirus crisis sent concerns about health and personal finances rocketing, according to new research from data insight specialist Consumer Intelligence.
THE CREDIT PARADOX – RISK CAUTION VS VULNERABLE SUPPORT
The FCA has proved itself to be surprisingly agile responding to the Covid-19 pandemic, but there’s a paradox on the horizon that needs to be addressed.
DO YOU KNOW HOW MANY VULNERABLE CUSTOMERS YOU HAVE? YOU SHOULD
One size doesn’t fit all when it comes to treating customers fairly. The Financial Conduct Authority (FCA) has made clear that it wants to see evidence from insurers and brokers about how they are identifying specific vulnerable customer groups and making any necessary adaptations to the way they design or distribute products.
PERSONAL FINANCES WILL CHANGE THE INSURANCE INDUSTRY FOREVER
The FCA’s Financial Lives Survey, published in October 2017, deserves to be on Board agendas throughout the insurance sector. One of its headline findings was that more than half the UK’s adults show one or more characteristics of potentially vulnerability.
VULNERABLE INSURANCE CUSTOMERS UNDER THE SPOTLIGHT
Over three quarters of insurance customers reveal they struggle to understand information provided by their insurer. However only 13% would identify themselves as a vulnerable customer.
THE 6 PS OF USER EXPERIENCE AND WHY IT MATTERS
There’s no doubt that once the dust settles after the coronavirus pandemic the insurance market will look very different. Customers will have been changed by their experiences and how you compete for them will have to change too.
HOW DO FINANCIALLY VULNERABLE CUSTOMERS BUY INSURANCE?
The protection of financially vulnerable customers is squarely in the FCA’s sights. On Tuesday it launched a consultation on proposed guidance for firms on how treating these customers fairly should work in practice, from policy design through to special assistance phone lines.
FCA DEMANDS INSURANCE INDUSTRY GOES COLD TURKEY ON DUAL PRICING
Consumer Intelligence welcomes the announcement from the FCA today as a major reset of confidence and trust in the financial services industry.
Consumer Intelligence is a market benchmarking, insight and data analytics company specialising in Insurance and Financial Services. We work in partnerships with our clients to help them create and protect distinct relationships with their customers through our unique combination of market and consumer insight. We do this because we believe that companies who fixate on customer satisfaction will survive and grow. We have over 14 years’ quantitative and qualitative research experience and the insights we gather enables our clients to benchmark themselves, better understand their customers, and help attract new business.
We are an insight partner for financial services, inspiring confident decisions that build consumer trust. At the heart of every business are customers. At Consumer Intelligence, we gather unique data and intelligence about consumers and companies to understand the market.
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