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29 July 2022

Consumer Duty is an opportunity for insurers to build a more loyal customer base

The incoming Consumer Duty regulations from the FCA should be seen as an opportunity for insurers to build a more loyal customer base.

The new regulations should lead to better customer outcomes and products that deliver greater value to customers, and those insurers that approach these regulations in the right way can reap the benefits.

The Consumer Duty regulations are all about doing what is right by the customer, whether that be designing the right products, explaining policy wordings clearly, or simply answering queries in a prompt manner.

For those insurers that see these regulations as an avenue for improving their service and customer satisfaction by offering fairer and better value products, there are some real opportunities to be gained from these new rules.

Having said that, the timetable for implementation remains tight, despite the three-month extension announced today, and insurers must act now if they are not to be left behind. First up is to put a plan in place detailing their approach to the new Consumer Duty rules and to assess any areas of shortcomings that may need addressing.

Key to this is understanding service levels and product performance against the new requirements as well as in the context of the wider market. And those insurers that then use this insight as an opportunity to develop the right offering for customers will be rewarded by more satisfied and loyal customers, the effect of which will only be amplified by the new dual pricing rules that prohibited the price walking practices that have done so much to harm customer loyalty in recent years.

If you would like to find out more about how Insurance DataLab can help your business better understand how it is performing on a range of measures from customer experience through complaints handling to financial results and much more, then get in touch now. You can also request a free trial of our data insight platform.

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