Chapter 13: Customer Service Flashcards
What are value-added services?
Those in addition to the insurance services offered. E.g. 24 hour helplines.
What does the Transparency and Insurance: A Companion to the Code of Ethics (produced by the CII) state?
- Clear wordings for average customers
- Interpretations should err on the side of the consumer
- Welcome internal and external feedback on documents
- Aim for reading material to be understood by those aged 13 or less
- Understand the underwriting intent of the policy
What are the benefits of good customer service?
- Customer loyalty
- Attracting new customers
- Attracting high-quality employees
- Competitiveness
- Profitability
- Productivity (as complaints are less frequent)
- Happier employees
What must customer service standards be?
- Realistic
- Understandable
- Measurable
How frequently should appraisals take place?
Not less than annual.
What does the Enterprise Act 2016 allow insureds to do if their insurer is slow in claim settlement?
Claim damages.
What is the limitation period to claim damages for delayed claim settlement?
One year from the date of the last payment by the insurer in relation to the loss.
For how long should details of a complaint be held?
3 years from the date of the complaint.
How frequently should a complaints record be submitted to the FCA?
Every 6 months.
(Must include the amount of redress paid)
How long do firms have to acknowledge the complaint?
8 weeks.
Who are eligible complainants according to the Financial Ombudsman Service?
- Consumers
- Charities < £6.5m
- Trustees < £5m
- Small businesses < £6.5m && < 50 employees
- Guarantors
How long does a complainant have to refer the complaint to the FOS after receiving the final decision?
6 months.
How long does a complainant have to refer the claim to the FOS after the event complained about?
6 years.
How long does the FOS have to reply to the complainant?
3 months.
What’s the current limit of award by the FOS?
£435,000
What was the limit of award for complaints before April 2019?
£195,000
What rate of interest may be payable on the compensation awarded by the FOS?
8%
What is a FOS ‘directions award’?
A formal instruction to the firm at fault outlining how they can improve.
How is the FOS funded?
- Levy on all firms
- Case fee
According to the Enterprise Act 2016, insurers must pay claims settlements…
Within a reasonable time.
