Write or refer – what does this mean for Consumer Duty?
The dreaded Consumer Duty echo’s around the heads of all financial services businesses. It’s all hotting up as we rapidly approach the deadline of July 31st.
Something that is very close to our heart at the Insurance Surgery, is the importance of either writing or referring clients to ensure they are receiving the most appropriate and suitable life protection product. Thanks to our longevity and reputation we are fortunate to have a bit more access to products than most, so are well-placed to provide solutions for customers with many pre-existing conditions.
With this date looming on the horizon. We thought we would hold a poll on LinkedIn just to see where people’s heads were in relation to the ‘write or refer’ idea.
The question posed was:
‘How likely are you to refer a declined client to a specialist life insurance broker?’
The results were:
Yes – I have a referral partner – 50%
Maybe – 28%
No – not at all – 22%
Although, admittedly, not a sample size that spans the breadth of the UK. It was enough to give an indication of how the land lies.
Given the importance and the amount of coverage Consumer Duty has garnered since its first utterance many moons ago. The responses beg a few questions:
- Why are some businesses not interpreting Consumer Duty as intended?
- Why would some businesses see their customers not covered than provide them with a solution that can provide financial protection?
- Given the FCA is striving for better consumer outcomes, what more should it be doing in our industry to ensure that the principles will be upheld?
Whatever the answers to these questions, it will be very interesting to see how everything is both implemented and then regulated to ensure that consumers are, demonstrably, at the forefront of our minds.
The Insurance Surgery is a specialist life protection broker – specialising in providing products for customers with medical conditions and hazardous occupations. Founded over 20 years ago, it has now helped over 80,000 customers and business partners.
Author: Andy Mellor, Managing Director at The Insurance Surgery
For more information on the Insurance Surgery referral process, please contact 0800 083 2829 or email [email protected] .
