Context
The ABI has responded to the Which? report criticising the insurance industry for not making it clear enough how it defines a ‘storm’ or a ‘flood’. The report quotes FCA figures that 32% of insurance claims on ‘buildings insurance only’ policies are rejected.
Key points to note and next actions
- The ABI has stressed that it is essential that policy terms are set out as clearly as possible to consumers.
- The ABI encourages all insurers to take heed of the Which? report, and consider how their offering can be made clearer.
- The CII’s Code of Ethics requires members to ask themselves, ‘Do I provide clear information pre- and post-sale?’ and ‘Do I listen to my clients or just hear them?
- This spirit of continuous improvement is also summed up by FCA’s Consumer Duty, which stresses that effective communications that customers can understand, and effective consumer support, are an essential way in which firms act to enable and support customers to pursue their financial objectives’.