C4 Dispatches:: insurance industry – profit before people
Tuesday, 8 January, 2013 2 Comments
The insurance industry, consistently, dispels the myth of “honour amongst thieves”. In this programme we see it through the lens of motor insurance BUT bad practice doesn’t stop there.
If you didn’t watch the programme…you should! Follow the link embedded in this picture (may only work in UK – sorry!).
For the sake of clarity, you may, also, wish to consider the definition of the word that the Office of Fair Trading used to describe the motor insurance industry: DYSFUNCTIONAL
Once you have watched the programme I reckon you will understand why.
- Not operating normally or properly.
- Deviating from the norms of social behaviour in a way regarded as bad.
Certainly NOT what you expect when you pay such large premiums every year!
I have spoken to a wide range of senior industry people and (as you will see from the ‘Related articles’ below) written about insurance industry practices on many occasions. But the insurance industry aren’t good listeners…particularly when you are telling them why and where they are going wrong. Apparently it doesn’t help even when you present them with solutions and alternative strategies!!! What was considered to be “bad practice, has, gradually, evolved from accepted practice to become common practice. Over the last 30 years (in particular over the last decade – despite Regulation) “the model” has superseded the customer as the No. 1 priority in every area EXCEPT FOR MARKETING.
IF their marketing accurately reflected how the industry actually treated their customers they could slash that budget and invest it in delivering what customers’ pay for!
Ironically this programme appeared on the same evening that BBC aired an episode of Rip Off Britain that didn’t show the insurance industry [Regulated by FSA] in a terribly favourable light in relation to fire and flood claims. This didn’t come as much of a surprise and, although not factors in the cases they covered, the entire insurance claims process is in an unwanted (but justified) spotlight. A recent article regarding the failure of Merlin and some dubious industry practices has attracted an incredible amount of interest and comment. It led to an interview that appeared in the insurance press [Post Magazine].
Realistically the subject of insurance rip-offs could be the subject of an entire series on any number of channels BECAUSE THEY ARE NOT TRUSTED…NOR SHOULD THEY BE. UNTIL SUCH TIME AS THEY CAN OFFER A HIGH LEVEL OF TRANSPARENCY IT IS A CASE OF CAVEAT EMPTOR.
The UK insurance industry: victims, enablers, perpetrators and beneficiaries of fraud FOR WHICH WE PAY. You have been warned…again.
Related articles: read ‘em and weep!