ABI’s Paul Evans and Biba’s Lord Hunt says customers must be handled with care

23rd March 2016

A healthy, competitive and diverse insurance industry is vital to the proper functioning of society – socially, economically and professionally. That is why the ABI and BIBA have made such a powerful commitment to working together and speaking with one voice, the better to inform, advise and serve our clients – and, ultimately, to protect individuals and firms from risks that might otherwise seriously damage or even overwhelm them.

Customers need their interactions with the insurance industry to be clear and straightforward and the ABI and BIBA are both passionate about enabling our members to fulfil those needs.  Insurers and brokers share a common and absolute determination to improve transparency and access to insurance.

That is why in January we saw a landmark agreement between the ABI and BIBA as we launched a cross-industry initiative between insurers and brokers designed to help potentially vulnerable customers at renewal.  The Code of Good Practice on Vulnerable Customers will enable insurers and brokers to recognise and help potentially vulnerable customers who may need extra support when renewing their motor or home insurance.

This initiative forms part of our commitment to help all customers make the most of the insurance market. We’ve previously worked together with Government to refresh the ‘Agreement on Age and Insurance’ to help older people find the insurance that meets their needs.  This spirit of partnership and common cause between the ABI and BIBA will continue – placing customers at the centre of everything we do, to become trusted partners in their everyday lives.

That trust is fundamental to the future success of our industry. Surveys show that our reputation has suffered in recent years, and levels of trust in the insurance sector are below where they should be. We have a shared duty to rectify this because our products and services are essential to the functioning of our economy and society.  Insurance helps people, businesses and society reach for their full potential without the fear for the financial consequences when things go wrong.  Every day more than £40 million is paid to motor and property insurance customers in claims, and we must do more together to build trust that our clients have paid a fair price for cover that will meet their needs if the unexpected strikes.

Pro-actively addressing the concern that vulnerable customers might be disadvantaged at renewal by simply renewing their policy from one year to the next without any check is just one example of how we hope to seize the agenda and enhance the reputation of our industry and the trust of our customers.