C4 Dispatches:: insurance industry – profit before people


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!).

motor ins ripoff

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 Read more of this post

Banks do not focus on customers, says OFT chief – New Model Adviser®


Rather, the problem is that they view customers as a “means to an end” – a common complaint about firms across Financial Services!

The “shift”, that has taken place over many years, and accelerated courtesy of “light-touch Regulation”, saw the focus move from responsible lending to misrepresenting debt as credit and widespread mis-selling at every scale:

Earning loyalty and trust by serving customers with products that added value is a long, slow, process – stable and sustainable (win/win).

Chasing and retaining market share, based upon indebtedness and inertia is cheap and fast – fragile, volatile and unsustainable (lose/win).

Fingleton said that the financial crisis has worsened the situation and that concentration had increased across most banking markets.

‘At the heart of the concerns about these markets is a lack of ‘customer focus’ on the part of providers,’ he said. ‘We still have a banking sector where competition is manifestly not working well for consumers.’

He warned that ‘if we do not see real change from banks, then a more radical approach needs to be considered.’

via Banks do not focus on customers, says OFT chief – New Model Adviser®.