The Financial Services Consumer Panel has launched its research on straightforward outcome products to stimulate debate in the insurance industry.
The panel believes that consumers should be able to access products that meet their needs by delivering a straightforward and expected outcome. Currently many consumers find choosing the right product a stressful and frequently unrewarding experience, with product complexity a significant stumbling block.
Adam Phillips comments: "The panel wants to see consumers given access to products that do what they say on the tin. We hope that our research will encourage a debate within the industry, government and amongst consumers regarding the availability of products with straightforward outcomes. It is crucial to rebuild trust in insurance. We think that the ability to buy products that have straightforward objectives and which deliver clearly defined results will help to do this. Our research has set out likely criteria for product types and analysed existing products that might meet their promises. In the future we look to the development of a range of straightforward outcome products which, depending on the individual consumer, could either be sold execution only, or through an advice process."