Organisation launches new Public Trust Index.
The Chartered Insurance Institute (CII) has launched its Public Trust Index, designed to measure consumer confidence in insurance.
According to the index, the number one issue for consumers is dual pricing, which they perceive as a lack of loyalty from their insurer.
The debate surrounding dual pricing has recently flared up again and the Financial Conduct Authority said in its Business Plan for 2018/19 that it was looking into the issue.
The Chartered Insurance Institute (CII) has launched its Public Trust Index, designed to measure consumer confidence in insurance.
According to the index, the number one issue for consumers is dual pricing, which they perceive as a lack of loyalty from their insurer.
The debate surrounding dual pricing has recently flared up again and the Financial Conduct Authority said in its Business Plan for 2018/19 that it was looking into the issue.
In addition, The Association of British Insurers (ABI) and British Insurance Brokers’ Association (Biba) unveiled a set of Guiding Principles and Action Points to tackle dual pricing in May this year.
Claims
The CII also noted that the research showed that price is relatively unimportant when buying insurance.
Having a claim settled quickly was ranked most important and the organisation noted that the index also showed that insurers were doing well when it came to settling claims.
In addition, 69% of those surveyed said they find it easy to buy from insurers and 67% are confident in the products that they are buying.
The CII stated that the index is based on research with consumers, SMEs, insurers, regulators and public bodies.
Researchers looked at what those buying insurance consider to be important and compared this with how they perceived insurers’ performance.
Work together
Sian Fisher, CEO of the CII, commented: “This first Index highlights how the insurance profession is performing and areas for improvement.
“Insurers are doing an excellent job when it comes to settling claims and keeping people protected, which flies in the face of some of the popular cynicism towards insurance.”
She continued: “However, the disparity between the pricing for new and existing customers in the personal lines market is eroding trust and we as a profession must work together to address this.
“The research underlines the importance of the ABI and Biba principles on maintaining fairness between new and existing customers when setting renewal premiums published in May, and we call on all insurers to implement these principles fully and wholeheartedly.”
Claims
The CII also noted that the research showed that price is relatively unimportant when buying insurance.
Having a claim settled quickly was ranked most important and the organisation noted that the index also showed that insurers were doing well when it came to settling claims.
In addition, 69% of those surveyed said they find it easy to buy from insurers and 67% are confident in the products that they are buying.
The CII stated that the index is based on research with consumers, SMEs, insurers, regulators and public bodies.
Researchers looked at what those buying insurance consider to be important and compared this with how they perceived insurers’ performance.
Work together
Sian Fisher, CEO of the CII, commented: “This first Index highlights how the insurance profession is performing and areas for improvement.
“Insurers are doing an excellent job when it comes to settling claims and keeping people protected, which flies in the face of some of the popular cynicism towards insurance.”
She continued: “However, the disparity between the pricing for new and existing customers in the personal lines market is eroding trust and we as a profession must work together to address this.
“The research underlines the importance of the ABI and Biba principles on maintaining fairness between new and existing customers when setting renewal premiums published in May, and we call on all insurers to implement these principles fully and wholeheartedly.”
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