Regulator FSA has undertaken consumer research into areas of
concern for customers, to help it plan current and future regulation projects.
Too many providers fell short on their promises and trust
has fallen. While insurers, brokers and banks may see themselves as different,
consumers tend to mentally lump them all together.
Key concerns:
- Pressure selling –providers, particularly banks, are too
proactive on sales. Consumers are also concerned with up-selling products that
may not be suitable for them. Staff often have inadequate levels of product
knowledge and training
- Existing customers ignored-The focus on new customers lead
to poor service for existing customers and failure to build an ongoing
relationship
- Poor complaints handling-the provider is always right.
Customers with real complaints are discouraged, made to feel unwelcome and
attacked
- Complexity and volume of communication – providers send
too much stuff that is impossible to understand and stuffed with insurance
jargon
- Changing terms and conditions- customers get a bad deal
from changes that reduce cover or increase price, with no advance notice or
real reasons given
The general feeling is that everyone selling insurance could
do much better and few insurers have really changed their ways.
