When it's too late, it's too late

As a nation we are increasingly comfortable transacting online, and that includes a huge demand for buying insurance online.??

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For me, this highlights the importance and value of advice. Insurance is complicated, and people don’t know what they don’t know. As a profession we have moved to a place where consumers and businesses are trying to fend for themselves in deciding their insurance needs, the policies available to them, and most importantly, understanding the small print.?

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We’ve seen some market players trying to simplify insurance – the products and the prices – but in doing this there's a big danger that they reduce not only its effectiveness, but also overall trust in insurance.?

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Customers, whether they are a business or a private consumer, just want insurance to provide the cover they expect.?But as a profession, unless we talk to people and understand what they expect their policy to do, know more about what they think will happen, and critically what they want to happen, then there is a significant risk that the products people buy won’t perform as expected, leaving disappointed and let down customers.?

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If someone buys a household policy and their roof leaks, they will assume they have an insurance claim – but is it a maintenance issue or storm damage??And if you are burgled, that's a valid claim, isn't it? But what about if you haven't set your alarm or didn’t know you needed to have an alarm? What about if you leave your windows open and someone breaks in? Is that covered or not covered? What if you take belongings out of the house? Are they still insured???

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It’s complicated – decisions can’t be made on price alone, and in most cases should be an advised decision.?Because when people inadvertently buy products that are not fit for purpose, they won’t realise this until it’s too late. And then, too often, there is little that can be done.?

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The acid test is simple in my view. Would you sell your mum that policy??

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The purchase of products that won’t deliver when the worst happens is one of the biggest dangers facing our profession, so we have got to promote advice more. We have a responsibility to businesses and consumers to be a trusted profession, made up of trusted advisers, advising on trustworthy products.?

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The Chartered Insurance Institute’s (CII) Royal Charter states that it must work to “secure and justify the confidence of the public” in the insurance and financial planning profession, to which its 125,000 members belong.?

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In a fast-moving world where customers’ expectations are constantly evolving, the CII needs to stay one step ahead of the risks we face and ensure we can build and sustain trust in our profession.??

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I believe the CII has a role to play in shaping the professional standards and ethics of our profession, and I like to think that CII members would agree.?

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But what more can be done? Do members want the CII to be more vocal about ethical standards and decent, trustworthy practices that put the customer first? To my mind, that fits in with the whole purpose of the CII – to promote public trust.?

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The CII’s current consultation – Shaping the future together – allows everyone to have their say on how the CII best can support our profession.?

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In the consultation, all CII members can share their views on several areas, including the future of professionalism. The CII acknowledges that professionalism is more important than ever in a fast-changing world and that it sits at the heart of its purpose under the Royal Charter. So, I encourage all members to take this opportunity and be sure to share views before the consultation closes on 17 December.?

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Have your say here: https://www.ciigroup.org/en/shaping-the-future/

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#shapingthefuturetogether

#haveyoursay?

#ciiconsultation?

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