UK Insurance: Nobody expects the Spanish inquisition…Part "tres" – Spanish lessons anyone?


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Integrity, value and service have been replaced by a façade woven by pricing, marketing and advertising.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…

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UK Insurance: Nobody expects the Spanish inquisition…again! Just in case anyone who read this thought “that doesn’t really apply to the broader [general] insurance market” and that I may be totally wrong to suggest that further questions may follow, you may want to take a look at this. Also from OFT and relating to the motor insurance market BUT with implications for activities involving household, motorcycle and commercial vehicle insurance The OFT today published, for consultation, commitments offered b … Read More

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2010 Report Updates: FS cannot function without trust


This is a “headline” so obvious that it may well be a contender for non-news item of the decade…

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So you would be entitled to assume that strategists within major banks and insurers would be busily scurrying around frantically innovating new products and services that simply ooze customer value. Frankly, anything that rebuilds trust and engenders loyalty, in an effort to undo the reputational damage done in recent years.

Yeah right. Customers aren’t really that important…yet!

I commented upon Edelman Trust Barometer & “Which?” reports earlier in the year – found at the following link:

Transparency – Trust – Trends – TRANSFORMATION

I know I have been going on about this for a long time now BUT, from the distinct lack of any change of attitude or strategy, it appears that the customer message has not been taken on board. Further evidence of the arrogance of FS and, in my humble opinion, a very serious mistake. As we enter, what will be, a difficult and painful period for UK (and beyond) the realisation that the perpetrators of so much of the financial misery have “escaped”, unscathed –  apart from a lot of Governmental and Regulatory rhetoric, will lead to a public backlash! Of course this has most serious implications for Government as society suffers.

FS firms who wait before offering truly innovative solutions and reintroducing customer value – instead of stripping it our for themselves and for their distributions channels – will only confirm, to the informed observer, that they have failed to learn any lesson from past, inglorious, failure.

To adapt the words of Warren Buffett “If value is what you take price is what you will pay

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