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The Arc Legal team regularly participates in trade press events and provides media comment on relevant issues. Below is an extract from the Insurance Age Power Hour event attended by Helen Withers. The round table of industry representatives discussed how the insurance industry could protect its reputation in light of damage sustained in other parts of the financial services sector.
CLEARING ITS NAME
Given the tarnished reputation of the financial services industry, specifically in banking, how can insurance differentiate itself and ensure it does not get tarred with the same brush?
Commenting on some key areas of difference between the sectors:
Helen: “….and insurance offers a completely different type of product to a different type of customer than the banking sector, where people have been buying products to try to make themselves wealthier, by taking out 100% mortgages for example. In insurance, product expectations are much more straightforward and, as long as the products are communicated clearly and effectively, the customer should have a realistic expectation that it will deliver.”
Commenting on the role of brokers:
Helen: “It comes down to clear communication as to what the product delivers and what benefits the customer can expect. Brokers have a key role to play in making sure the customer gets clear communication because some of the product areas are complex and difficult to understand.”
Commenting on the role of regulation:
Helen: “With Treating Customers Fairly (TCF), making sure you sell in a fair and responsible manner has to be central.”
“There is a perception on the banking side that a lot of brain power is applied to getting around regulation instead of embracing it, so that is a key point on which the insurance industry will be able to differentiate itself.”
“…..we cannot rely on regulation to sweep up all of the problems. It is not a substitute for sound commercial business.”
The full article can be found at www.insuranceage.com