The insurance sector is operating in an environment with increasing rules and regulations, with the latest focus on Consumer Duty, Branko Bjelobaba told delegates at the in November.
In an interview with Shaun Kelly, chief ethics officer and vice president, Global Compliance Office, at Crawford, Branko Bjelobaba, founder of compliance consultancy, Branko, discussed how Consumer Duty is setting higher standards for customer protection across the financial services sector in the UK.
He told delegates: 鈥淚t sets up [the industry] for clear outcomes and everyone is required to measure how they perform against the Consumer Duty rules and provide appropriate evidence which ensures clients are treated fairly in terms of performance, service delivery and delegated matters.鈥�
He reminded delegates that consumers include individual personal lines customer and businesses in the SME bracket. So, some 鈥渃ommercial clients are also entitled to the benefits of Consumer Duty.鈥�
Bjelobaba detailed that COVID-19, and subsequent business interruption claims, highlighted a clear mismatch between what customers understood to expect and what they receive. He detailed that a recent FCA review found that 鈥渙ne in 12 claimants had problems mainly with the process taking too long or with poor service or communication from the provider and for service delivery partner.鈥�
He emphasised: 鈥淭he FCA will have a strong focus on Consumer Duty interpretation, especially in the current tough macroeconomic environment. They expect firms to assess and address issues with products and services, price and value, consumer understanding and consumer support. They also expect firms to put the consumer at the heart of their business to ensure they're delivering good outcomes.鈥�
At its core, Consumer Duty is about treating customers fairly and there is a clear role for the loss adjuster as well as the broker or insurer.
Bjelobaba urged the loss adjuster space to move forward with a focus on recruiting the right talent and utilising expertise in tandem with new technologies to achieve the best outcomes.
鈥淭he complexity of high value claims means that whilst efficiencies and automation can aid claims management, corners cannot be cut. Expertise, experience, reassurance, professionalism and an overriding duty to ensure fair settlement for all parties should never come cheap,鈥� he insisted.
Bjelobaba praised Crawford for its service proposition.
鈥淵ou've pledged to provide helpful and accessible customer support and timely and effective communications. Further, for the last 80 years you have maintained your commitment to putting people first and delivering the highest quality service for your customers.鈥�
Crawford鈥檚 ethos means it is well positioned to meet any fresh requirements arising from Consumer Duty. He concluded: 鈥淵our customer enhancement service resembles BA first class.鈥�
