Modern Insurance Magazine Issue 62
This issue features... Insight: A Guide to the New Consumer Duty, with Branko Bjelobaba, FCII Interview: Doing the Right Thing, with Matt Brewis, Financial Conduct Authority (FCA) Interview: A New Consumer Freedom, with Sam Richardson, Which? Money Editorial Board: Find out what our editorial board panel of experts have to say in this edition of Modern Insurance Magazine Associations Assemble: Modern Insurance's panel of resident associations outline the burning issues in insurance Just a Thought with Eddie Longworth... Suppliers Must Also Deliver Consumer Duty Obligations Consumer Intelligence: Avoiding Consumer Harm in the Consumer Duty Age Modern Claims Awards 2024: Meet the Judges EDAM Group: Meet the Company, 'Internal Satisfaction Informs Customer Satisfaction at EDAM Group' Dive In Festival: Dive In's 'Below the Surface' Event Shines a Light on Insurance Industry's Diversity and Inclusion Challenges Thinking Upside Down: Consumer Duty: An Illusion?? with Michael Lewis, CEO, Claim Technology I Love Claims / ARC 360: The Unintended Consequences of Consumer Duty Europcar: Can the Insurance Sector Help to Accelerate the Adoption of EV? with James Roberts, Head of Insurance Sales 10 Mins with… Ajay Mistry, Founder and Director, Gambit Partners, & Co-Founder and Co-Chair, iCAN (The Insurance Cultural Awareness Network) Insur.Tech.Talk - Interviews with Farooq Sheikh, Global Head of Insurance at Unqork; Brent Williams, Founder and CEO at Benekiva; Juan Mazzini, Head of Insurance Practice APAC, EMEA, LATAM at Celent; Meredith Barnes-Cook, Partner at ReSource Pro Consulting; and Ron Rock, Managing Director - Financial Services at JobsOhio Insur.Tech.Talk Editorial Board - Experts from within the insurtech sector and beyond join us once more to share their unique insights!
This issue features...
Insight: A Guide to the New Consumer Duty, with Branko Bjelobaba, FCII
Interview: Doing the Right Thing, with Matt Brewis, Financial Conduct Authority (FCA)
Interview: A New Consumer Freedom, with Sam Richardson, Which? Money
Editorial Board: Find out what our editorial board panel of experts have to say in this edition of Modern Insurance Magazine
Associations Assemble: Modern Insurance's panel of resident associations outline the burning issues in insurance
Just a Thought with Eddie Longworth... Suppliers Must Also Deliver Consumer Duty Obligations
Consumer Intelligence: Avoiding Consumer Harm in the Consumer Duty Age
Modern Claims Awards 2024: Meet the Judges
EDAM Group: Meet the Company, 'Internal Satisfaction Informs Customer Satisfaction at EDAM Group'
Dive In Festival: Dive In's 'Below the Surface' Event Shines a Light on Insurance Industry's Diversity and Inclusion Challenges
Thinking Upside Down: Consumer Duty: An Illusion?? with Michael Lewis, CEO, Claim Technology
I Love Claims / ARC 360: The Unintended Consequences of Consumer Duty
Europcar: Can the Insurance Sector Help to Accelerate the Adoption of EV? with James Roberts, Head of Insurance Sales
10 Mins with… Ajay Mistry, Founder and Director, Gambit Partners, & Co-Founder and Co-Chair, iCAN (The Insurance Cultural Awareness Network)
Insur.Tech.Talk - Interviews with Farooq Sheikh, Global Head of Insurance at Unqork; Brent Williams, Founder and CEO at Benekiva; Juan Mazzini, Head of Insurance Practice APAC, EMEA, LATAM at Celent; Meredith Barnes-Cook, Partner at ReSource Pro Consulting; and Ron Rock, Managing Director - Financial Services at JobsOhio
Insur.Tech.Talk Editorial Board - Experts from within the insurtech sector and beyond join us once more to share their unique insights!
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INSIGHT<br />
A GUIDE TO THE NEW<br />
CONSUMER<br />
DUTY<br />
By now, I’m sure that everyone in the<br />
insurance industry will have heard<br />
about the new Consumer Duty. New<br />
regulations kicked off on 31st July<br />
2023, with the Financial Conduct<br />
Authority (FCA) going into overdrive<br />
to issue helpful guidance, letters - as<br />
well as playing host to a number of<br />
interesting podcasts and Q&As – in<br />
order to explain what’s needed.<br />
I, for one, welcome the new Consumer<br />
Duty. The Financial Services Authority<br />
commenced the regulation of General<br />
<strong>Insurance</strong> on 14th January 2005, and it<br />
all began with the principle of ‘Treating<br />
Customers Fairly’. This brief piece of<br />
commentary provides a springboard<br />
with which to further discuss my<br />
thoughts on the new Consumer Duty.<br />
Consumer Duty applies to everything that falls under FCA<br />
regulations – not just insurance, but also investments,<br />
mortgages, bank accounts, funeral plans, and so on. For<br />
insurance, this will be a progressive activity. However, for<br />
longer term policies, the new Consumer Duty will also apply<br />
in a retrospective sphere, and a ‘rear mirror’ approach will<br />
be needed to ensure compliance. In other words, does the<br />
product and service still work in the best interests of the<br />
consumer? Does it still provide fair value? This is a most<br />
interesting concept, but think of it like ongoing safety<br />
recalls on cars. Such evaluations can go on for several years<br />
in the event that a fault is discovered!<br />
So, if we have had the ‘Treating Customers Fairly’ principle<br />
for so long, why do we need to add a new principle, three<br />
cost cutting rules, and four outcomes?<br />
To refer back to the motor analogy, think of this as a very<br />
comprehensive instruction manual for a new car. It will<br />
show you how the product was made, how green it is, how<br />
everything works, what you need to do to enhance your<br />
driving experience, what happens if there is a blip… and<br />
then who you should address a complaint to! There will be<br />
copious detail included around design, assembly, testing,<br />
re-testing… the list goes on. Cars these days are incredibly<br />
complex, and likewise, insurance policies are hefty tomes.<br />
8 | MODERN INSURANCE