A Chartered Insurance Institute (CII) report has urged boards and senior leaders to engage directly with customer experiences to improve outcomes for vulnerable customers.
The report, ‘Managing Vulnerability in Insurance Roundtable Summary’, stated that firms need to move beyond a “tick-box mentality” to achieve genuine customer-centricity.
Attendees from the Financial Conduct Authority (FCA), Financial Ombudsman Service (FOS), and various industry experts highlighted the importance of quality management information and linking data to outcomes.
They found that many firms fail to demonstrate a clear link between identifying vulnerability and improving outcomes.
The report emphasised the need for insurers to create environments where vulnerable customers feel supported throughout the customer journey.
It called for moving away from rigid scripts and encouraging empathetic, flexible conversations, with training that focuses on verbal and non-verbal cues.
The report also highlighted that there are “significant training gaps” in the profession, especially among non-frontline staff.
It suggested extending vulnerability and empathy training to product design, underwriting, and leadership teams.
Roundtable participants proposed the development of clear, consistent standards to guide firms, as current regulations lack practical application in some areas.
Proposed standards would cover vulnerability identification, training, product design, and monitoring outcomes.
Matthew Hill, chief executive at CII, said: “Managing customer vulnerability within insurance services is still in its infancy.
“In recent years, work has been done to define what it means to be vulnerable, and how such individuals should be considered within our work, particularly with regards to client outcomes.
“The CII Roundtable Summary Report on Managing Vulnerability in Insurance aims to build on these premises, and develop effective processes that may be implemented by firms to deliver tangible improvements for vulnerable customers.”
