Complaints unfortunately happen in the claims environment – in some cases they are avoidable in others there are deep rooted causes, often a lack of understanding of what the policy actually covers, and the sector has still got work to do in educating some customers. The key with complaints is to recover the situation quickly and efficiently.
In the dynamic landscape of the UK insurance market, effective complaints management is not just a regulatory necessity; it’s a crucial component of maintaining customer trust and loyalty. As businesses navigate the complexities of consumer expectations and regulatory requirements set forth by the Financial Conduct Authority (FCA), the importance of having robust resources in place becomes clear.
Understanding the Complaints Landscape
The insurance industry often meets a diverse range of complaints, stemming from various classes of business. These can include issues related to policy coverage, claims processing, premium disputes, and customer service interactions. Each complaint represents a customer’s experience and emotions, often amplified by distressing circumstances. Therefore, overseeing these situations with care and empathy is not just beneficial; it is essential. The increasing emphasis on Consumer Duty, together with the existing focus on treating vulnerable customers fairly by the regulator, leaves little room for movement, and insurers, TPA’s and suppliers must be fully across the implications.
The Role of Skilled Professionals
Complaints management needs skilled resources with significant amounts of empathy together with a technical knowledge of the subject area. There is a danger in some cases that we don’t get this balance right. In a sizeable number of cases the customer just wants to be listened to and then in basic language have the reasoning explained. In our experience in supporting insurers, we have found the mix of technical skill with highly focused customer service skills pays huge dividends.
Experienced professionals trained to manage complaints can make a significant difference in resolving issues effectively. They understand the nuances of each case and can address the concerns of traumatised customers with sensitivity. This expertise is particularly vital in situations where customers are vulnerable, ensuring that they feel heard and valued.
Moreover, these professionals are well-versed in the principles of treating customers fairly, as mandated by the FCA. Their ability to navigate complex regulatory requirements while prioritising customer welfare helps build a culture of trust and transparency within the organisation.
The Need for Resources
While skilled personnel are invaluable, the need for additional resources cannot be overstated. Whether on a temporary or permanent basis, these resources can enhance the complaints management process significantly.
At Gallagher Bassett we recognised this, and our Claims Consulting team have been working in this space for many years. They provide focused and dedicated teams to our clients working alongside their own resources to ensure tight complaint deadlines are complied with and the customer experiences a quick recovery of the situation. We protect our client’s brand and relationship with the customer quickly and efficiently.
Why invest in resources?
Fluctuations in market conditions, regulatory changes, or unforeseen events can lead to surges in complaints. Having more resources readily available ensures that the business can respond promptly and effectively, minimizing customer frustration.
Seasonal fluctuations or specific events may necessitate temporary staffing solutions. Having a flexible resource strategy ensures that the business can scale operations without compromising service quality during high-demand periods. Consumer Duty means the sector must be able to respond quickly to customer demands. Doing so with a limited talent pool and fixed costs is not the answer. Expert resources like GB’s Claims Consulting teams can be quickly ramped up and inserted to deal with peak requirements.
Another consideration is the value of having enhanced training and development on hand. Investing in ongoing training for staff not only equips them with the latest knowledge of regulatory requirements but also enhances their soft skills in dealing with distressed customers. This can lead to improved resolution rates and customer satisfaction. The “osmosis” effect of knowledge transfer between our Claims Consulting team and client teams has been extremely valuable for our clients and their colleagues.
In the UK insurance market, effective complaints management is more than a regulatory requirement; it’s a pathway to fostering long-term relationships with customers. By investing in skilled professionals and the necessary resources, businesses can create a responsive, empathetic, and efficient complaints management system. This not only aligns with FCA requirements but also builds a reputation for excellence in customer service, setting the foundation for sustainable growth.
Contact our team today to find out GB’s Claims Consulting teams can help you keep your claim levels under control, prevent and resolve complaints, and ensure consistent high levels of customer service.
