Author: Richard Jones (pictured), managing director, Black Horse
Over the past few months, I have been reflecting on the findings from the Financial Conduct Authority’s report on the motor finance market, but today I want to turn my attention to the FCA’s recent general insurance (GI) publication and consider what implications this may have for the motor retail industry.
In the GI publication, the FCA highlighted risks that can lead to customers purchasing inappropriate products, paying excessive prices or receiving poor service.
It challenges whether insurance products offer good value, including those distributed through the motor channel, offered alongside car buying.
In order to determine value, a customer must understand their own needs and consider the options available to meet those needs.
As a vital part of this, it is important that customers receive key regulatory disclosures and product features early in the sales process, before agreeing on the appropriate insurance product.
The value exchange for the customer should always be clear and able to be understood.
It is of huge benefit if providers can monitor, track and control what information is provided to customers considering purchasing insurance products distributed via the motor market.
Customer contact programmes and mystery shopping provide valuable feedback to individuals at the front of the customer journey, ensuring a collaborative culture of continuous improvement.
Helping customers to assess their needs and understand their options is key to ensuring the right customer outcomes across our industry.
