UK Insurance: Nobody expects the Spanish inquisition…Part "tres" – Spanish lessons anyone?
Friday, 28 January, 2011 Leave a comment
I’m not normally an “I told you so” kinda guy BUT you may find it hard to believe if you track back to previous blog items (approx. 2 years worth) carrying the same WARNINGS and the offer of help.
Help to map a transitional path through sustainability, to transparency, then TRUST and competitive advantage. It MAY not be too late for some!
Now, we all know that FSA don’t have a great track record but the negative role of intermediaries has been the “elephant in the room” that simply could not be ignored any longer. Insurers and anyone who cares for the industry need this kind of intervention because the lobby for the status quo extends from broking into investment banking!
Related industries that should be reliant upon reputation and trust but have, instead, reduced the reputation and role of Financial Services to that of, virtual, door-to-door salesmen.
Integrity, value and service have been replaced by a façade woven by pricing, marketing and advertising.
The level of customer dissatisfaction, both at point of sale and, increasingly in claim resolution – I understand even OFT have been inundated by complaints – is as unsustainable as the commission rates…that have been “negotiated” or maintained using the worst kind of leverage.
The Financial Services Authority (FSA) has published a discussion paper to open a public debate about how it, and in future the proposed Consumer Protection and Markets Authority (CPMA), should best protect the consumer with a specific focus on product intervention.
Under the new regulatory structure, insurance intermediaries will come under the CPMA’s remit.
As part of its new consumer protection strategy introduced last year, the FSA said it has already introduced a more interventionist approach with the aim of anticipating consumer detriment where possible and stopping it before it occurs…
Read more here