It’s been almost a year since the Financial Conduct Authority released their new Consumer Duty framework, which holds regulated companies more accountable for how they ensure positive customer outcomes.
For insurers and brokers, the framework has inspired closer evaluation of their customer-facing claims processes to ensure they’re compatible with the new priorities, and promote the four key outcomes.
We’ve produced a free guide detailing how insurers can work with their suppliers to ensure Consumer Duty standards are upheld and championed across all ends of the claims lifecycle. In this article, we highlight the key best practice steps covered in the guide, and their importance for achieving positive & consistent customer outcomes.
How does Consumer Duty apply to insurance claims suppliers?
Many insurers rely on external suppliers to fulfil key parts of their claims journey, such as customer service, incident reporting, repair, and software services.
Although these suppliers aren’t always formally regulated or accountable to Consumer Duty, their input is vital for achieving positive policyholder outcomes at all ends of the insurance claims journey.
After all, if policyholders are interacting with outsourced personnel directly, through touchpoints like customer service or complaints, then these processes must reflect the same high-quality service they’d expect from their insurer.
This means insurers must engage with their suppliers to ensure Consumer Duty guidelines are understood, implemented, and treated as a core part of their ongoing service enhancement.
Six Steps to Consumer Duty Compliance in the Motor Claims Supply Chain
In our free Consumer Duty guide, we explore six key steps insurers can take to ensure consistent best-practice throughout their supply chain, and continued collaboration towards achieving the four outcomes. Here’s a summary of each step we explore in the guide:
1 – Map out processes and identify responsibilities
The first step is for insurers to map out their current claims process comprehensively, pinpointing key supplier responsibilities along the way. By understanding the roles of each stakeholder in the customer journey, insurers gain valuable insight into how suppliers contribute to the overall experience.
2 – Identify how customer touchpoints are delivered
Insurers need to understand how their suppliers are communicating with policyholders, and the channels & platforms they’re using. This means assessing high-volume interactions to gain a detailed understanding of the help and support available throughout the customer journey.
3 – Engage with suppliers to establish your approach and commitments
Collaboration lies at the heart of Consumer Duty compliance. Not all of insurers’ suppliers will be formally regulated, so it’s important to engage proactively to ensure they know their obligations, and work together to establish practical steps for consistent fulfilment.
4 – Highlight specific KPIs to monitor customer outcomes
Monitoring supplier performance is key to assessing Consumer Duty compliance, through clear and actionable KPIs tracked across key customer touchpoints. These metrics serve as benchmarks for evaluating supplier performance and ensuring accountability.
5 – Consider third-party suppliers and how they’re managed
It’s important to consider third-party, or ‘onwards suppliers’ used by your primary suppliers, such as independent repairers or software providers. What steps could your supplier take to ensure Consumer Duty regulations are being met?
6 – Set clear long-term goals and timescales
Achieving Consumer Duty compliance is an ongoing journey that requires clear, long-term objectives and timelines. By working collaboratively with suppliers to establish these goals, insurers can track progress, identify areas for improvement, and drive continuous enhancements to the customer experience.
Download Now: Free Consumer Duty Guide for Motor Insurers
How to Ensure Consumer Duty Best Practice throughout your Claims Supply Chain
Activate Group are specialists in delivering customer-focused Accident Management services for insurers, brokers, MGAs, and their partners.
We work as an extension of our clients’ businesses to ensure a seamless, consistent claims journey for their customers – one that holds the four Consumer Duty outcomes at its heart.
Based on our experience, and our internal Consumer Duty framework, we’ve produced a free guide for how insurers can collaborate with their suppliers to ensure positive & consistent customer outcomes.
In it, we explore six key steps insurers can take to help their suppliers understand and implement Consumer Duty best practice, and monitor its success over time.
