Two-thirds of insurance professionals believe that the Financial Conduct Authority (FCA)’s business interruption case has reduced trust in the industry, according to the latest survey by the Chartered Insurance Institute (CII).
According to a social media survey of 142 CII members in September, 29% of insurance professionals felt that the FCA’s business interruption case reduced the public’s trust in the industry. Meanwhile, 39% of respondents thought it somewhat reduced consumers’ faith in policies paying out when needed.
“Consumers continue to value transparency and clarity as integral to trusting services and their providers. The poll results show how pragmatic insurance professionals are about the role of trust in their relationships with consumers and how important it is, tied to not just their actions but the actions of everyone involved in the market,” said Keith Richards, the chief membership officer of the CII.
“Since the FCA test case was announced, we have set out a clear blueprint as to how insurers could respond to the situation, predicated on settling claims outside of the courts where possible, looking towards improving clarity standards in product governance and looking to the future, supporting a comprehensive look at the role insurance can play in future pandemics, and where government liability needs to be introduced.”
The CII is calling for product governance processes, including gaining greater clarity on product wordings; improving advice processes; and establishing an approach to pandemics and other systematic risks that set up the scope of government intervention.