Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Insurance in 2018: competence and honesty to be regulated by EU

Blog
24th January 2018

My attention was caught recently by a big headline in Insurance Business UK magazine: “Will 2018 be the year of the insurance customer?” That’s a big question, but it’s exactly the kind of question I have been asking for several years. How are very traditional industries, such as insurance, embracing the need to be customer-centric in 2018?

Initially the article didn’t look promising. It talked about new certificates being launched this year by the Financial Conduct Authority (FCA). Clearly it helps the wider industry to ensure that managers are more knowledgeable and certified, but certificates will not dramatically change the customer experience of those buying insurance in the short term.

However, the article went on to talk about the impact of the Insurance Distribution Directive (IDD) – a European directive that member states need to apply into law immediately, but which will only be enforced by the EU from October 2018.

It sounds dry, but stay with me. This affects both traditional insurance companies and the new app-focused generation because it is focused on the ethical behaviour of companies that sell insurance. Most of the requirements in the IDD can be summarised with the requirements that ‘insurance distributors always act honestly, fairly and professionally in accordance with the best interests of their customers’ and that they ‘possess appropriate knowledge and ability in order to perform their duties adequately.’

That’s quite a sweeping requirement from the European regulator. Insurance companies need to guarantee that their employees have the knowledge needed to deliver an adequate service to customers and they must be fair and honest. It could be argued that competence and honesty should be expected in any industry without the need for a European regulator to go checking on company performance, but I think this is an interesting development for the wider insurance industry across all of Europe.

When exploring the development of the insurance industry there is a tendency to just focus on the Fintech angle – the startup companies launching new services that are customer-centric and often built around the smartphone interface. What the European regulator is doing with IDD is enforcing that in a regulated industry, such as insurance, all companies need to ensure both competence and honesty – regardless of how good your app looks.

At first glance, the IDD doesn’t sound like an industry game-changer, but I think it’s worth monitoring closely through 2018. How are individual insurance companies ensuring that their approach to certified competence and honesty creates a great customer experience? Leave a comment below or get in touch with me on LinkedIn.

Our white paper Insure Against Loss examines in detail the opportunities in the insurance sector. In this paper we will explore how delivering an exceptional customer experience can increase customer engagement levels and reduce customer churn.


Leave a Reply

Your email address will not be published.Required fields are marked *


Helen Murray
Article by: Helen Murray

News & Insights

Recommended for you
Solution Designer
Service Provider
Technology Enabler
Whitepaper
The Hybrid Model

As an international healthcare services organization, Direct Medica develops and implements innovative solutions to reshape the relationships between healthcare professionals, patients, industry players, hospitals and payers. For the past two years, the company has been developing a very innovative approach: the Hybrid Model. The following white paper brings a detailed overview of the...

Blog
Making every moment count with Together for Short Lives

Author: Guest Interview: Karen Yates Everyone at Webhelp is deeply honoured to support the incredible work of Together for Short Lives as our Charity of the Year 2019. This national charity supports seriously-ill children, their families, and the children’s hospices and services that they rely...

News
Making the switch to recycled paper!

It’s World Environment Day! The perfect time to announce that Webhelp is switching to 100% recycled paper across all its sites across the United Kingdom. World Environment Day is a United Nations spotlight designed to drive worldwide awareness and action to protect the environment.  Webhelp...

Case Studies
[Fashion] Fifty Jeans – Launch your brand without cashflow problems!

...

News
Pedalling hard for CF Warriors

Webhelp's Director of IT services, Stephen Dickson, joined record breaking Cystic Fibrosis warrior, Josh Llewellyn-Jones, this week, as he attempted his latest endurance feat by cycling from Edinburgh to Cardiff in just five days. Stephen cycled with Josh and his team for the final three days of...

Load more
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook