Good Practice Guides
In the last newsletter we reported on the programme of Good Practice Guides the Consumer Strategy Committee had agreed for 2007. This is an update on how the guides scheduled for release in Spring 2007 are progressing.
Product Design
The 2006/07 Customer Impact survey results show that customers continue to be dissatisfied with some aspects of the industry’s products. This is also an area of interest under the FSA’s TCF initiative.
The group drafting the guide on product design has met twice and the guide is progressing well. The principles that form the basis of the guide have been developed using the FSA’s material on TCF in this area. Where relevant, the group is also considering the issues raised by the Customer Impact survey.
The draft guide will be put out to consultation amongst the wider membership in March with a view to being published in April.
Unclaimed Policies
In January, the Treasury Select Committee announced that it would be conducting an inquiry into unclaimed assets. The TSC specifically mentioned that it would be examining the activity of insurance companies in this area.
This recent development reinforces the importance of the industry developing a Good Practice Guide in this area. The group drafting this guide has also met twice and continues to be on track for delivery by the start of April. In addition to a Good Practice Guide, the ABI is also working with members to quantify the scope of the issue and to understand better the legal considerations involved.
On-going Advice
The ABI has started work with members on this additional guide for delivery in the Spring. The Consumer Strategy Committee has established a working group to consider the level of help and guidance that insurers can provide to their existing customers, particularly those who may no longer be in contact with the adviser through whom they purchased the product.
The working group suggested developing a Guide to help clarify what members can do in this area. This work takes into account the current regulatory environment as well as the implications for relationships with intermediaries.