The CII’s survey on consumer attitudes to insurance has revealed how the profession is meeting the Financial Conduct Authority’s (FCA) Consumer Duty requirements, as well as areas where there is room for improvement.
This year, the regulator is introducing a new Consumer Duty across all forms of financial services, including insurance.
For each sector, the FCA will measure results under four headings: fair value, products and services, treatment of customers, and confidence.
Since 2018, the CII’s Public Trust Index has been measuring outcomes for general insurance that map across directly to these headings.
The latest Public Trust Index findings, produced by a survey of 1,000 consumers of home, motor and travel insurance between December 2021 and January 2022, deliver a benchmark for where the profession is and what it needs to do to meet the FCA’s Consumer Duty expectations.
The CII’s Public Trust Index reveals that, for most consumers, quality of service is more important than price. Consumers consistently state it is less important for them to have the cheapest policy, than it is to have:
- Confidence that the insurer will pay out
- An easy way to do business
- Rewards for loyalty
- An appropriate level of protection offered by a policy
- Claims that are paid quickly
- Respect from the insurer when they make a claim.
Matthew Connell, director of policy and public affairs of the CII, said: “For consumers, having confidence that their insurer will be there when they need them is the most important factor in buying insurance, with consumers attaching more importance to the statement ‘I know what the policy covers and excludes’ than any other.
“Between 48% and 53% of consumers said agreed with the statement ‘I know the company pays out quickly and worries about paperwork later’, whereas between 10% and 14% disagreed.”
