In an industry that sells protection in all its guises, the Consumer Duty presents a huge opportunity for protection providers; and customer service is a key area of differentiation in the competitive market.
David Mead, Director and Founder of Futureproof, speaking at Legal and General's 2024 Business Quality Awards (BQAs), said competition will drive efficiency, innovation, and high-quality customer service in the industry.
He highlights that Futureproof, which picked up the ‘Outstanding Customer Outcome' award at the Legal & General Business Quality Awards 2024 (BQAs) 'treats every client as though they are a member of our family' and that this helps to drive and embed the right ethos throughout the firm.
"From day one, every client gets an annual review letter, which reminds them about their cover, how they can make a claim and what access they have to additional benefits. If we want to have good retention and give people the opportunity to claim, it's important to remind them what they're spending their hard-earned money on," he says.
Adviser businesses need to be deliberate about their communications with clients to stop protection from being viewed as just another direct debit.
Mead highlights that Futureproof has implemented quarterly contact points with clients and that this engagement has had two benefits: Excellent retention rates and an open channel of communication where clients can come back when they've had a change of circumstance.
Consumer Duty presents opportunity
Consumer Duty is undoubtedly complex; but Mead says it is a huge opportunity for the industry to raise its standards, particularly around the area of claims.
Indeed, the Consumer Duty almost demands that claims need to be a big area of focus. He points to delays and poor communication during the claims process that can prolong it.
"The industry's got a great track record for paying high percentages of claims, but now that lens needs to change from that to how quickly claims are paid," he says.
"As an industry, we've made such big inroads around getting more people protected with income protection and they're much more likely to claim on that product. However, we need to make sure we have the staff and the technology to pay claims quickly, particularly on the short-term period," he says.
Resources and technology certainly have a role to play, but Mead says it also comes down to having appropriately trained staff in place.
"I think controversially, there's been too much emphasis on what's coming in through the front door. But the focus also needs to be on are how much we are resourcing. Chief executives and boards need to decide how important it is to get claims paid and get paid quickly. That is important to the industry's reputation," he says.
Smooth sailing
Protection is only needed during the hardest of times, so insurers are dealing with difficult subjects; whether that's people making claims, or those in financial distress and worrying about direct debits and how they're going to pay the bills.
To make the claims process as smooth and supportive as possible, Futureproof supports clients through the entire process, to minimise stress during difficult times. Clients are kept informed every step of the way so they will not need to worry about the status of their claim.
"We'll help them navigate their way through things that might cause obstacles in the underwriting process and the advice process. Both are really important. Again, it comes down to having quality advisors and treating clients as members of our family," says Mead.
Legal & General's 2024 Business Quality Awards, hosted at London's Chartered Accountants Hall on 21st May, celebrated the protection industry's advisers and businesses who have gone above and beyond to help their clients, delivering exceptional levels of customer service and retention of business.
