Chapter 13- Customer Service Flashcards
What is customer service
It’s a combination of marketing, strategic planning, research and systems
What is an external customer
A consumer is a type of external customer.
What is an internal customer
An employee of an insurance company who receiver service from other employees of the company
What are the 3 important buts or customer service
Consumer awareness- customer is more aware if their rights
2- expectations of services
3- competition. Every insurer needs to consider how to develop the customer skills of its employees and build employee confidence and professionalism
What are the normal customer service activities
Having agents provide service to customers in their homes
Allowing customer to conduct them business with the company using a free phone number
Setting up a 24 hr phone network for customers to call into
Providing interactive website
Providing a fast turnaround for quotes
Establishing complaint handling mechanisms
What are the benefits of providing customer service
Customer loyalty- it costs an average of 4 or 5 times as much to acquire a new business
Attracting new customers
Attracting and retaining high quality employees
Differentiating a company from its competitors
Improving the company’s profitability
Increasing productivity
Improving the work environment
What are the 4 benefits to a customer for putting insurance through a professional insurer
1- fast and efficient service
2- speedy claims settlement
3- accurate and effective assistance
4- value added benefits such as a a 24 hour helpline
What 3 things at must customer service standards be:
Realistic
Understandable
Measurable
What is a performance standard
A level of performance which actual performance can be measured
What are internal standards
Internal standards are developed inside the company based upon the company’s own service system they are used because
- are easy to gather
- reflect actual practices or procedures
- allow them to compare current performance against past performance
What do industry standards do
Allows a company to compare itself tocother companies in the same business
What is competence defined by the FCA
Having skills, knowledge and expertise to carry a function without the need for supervision
What is a key feature or the PRA when considering training
Effectiveness of training and its link to competence
What are authorised firms obligated to do in respect of training
Maintain a register of those who are competent and must be able to demonstrate the means by which competence has been measured
What does principle 6 require firmed to do under the PRA and FCA rulebook
Treat customer fairly
What is one of the primary areas of the FCA
The firms supervision frameworks is designed to access a firms conduct risk and asks if the interest of customers and market integrity are at the heart
What are the 6 outcomes published by the FCA
1- consumers can be confident they are dealing with firms where the fair treatment of customer is central
2- products and services are marketed and sold designed to meet demands and needs
3- consumers are provided with clear info
4- any advice given is suitable
5- consumers are provided with products that perform
6- consumers do not face unreasonable post sale barriers imposed by firms
How do firms exams and monitor every process in the context of customer service
1- carrying out sufficiently detailed research in developing new products that ensure they are appropriate
2- carrying out a sufficiently detailed analysis of a customers needs to be able to establish the most appropriate products
What are the minimum requirements of the FCA for claims handling set out in
ICOBS
What does the consumer rights act do in regards to claims handling
All claims should be dealt with in a reasonable time
Under ICOBS where an insurers rejection of a claim is considered reasonable it is for:
Non disclosure
Non negligent misrepresentation
Breach of a warranty or condition.
From the list below what would not be an aim of customer service policies introduced by insurers?
A) the attract new customers
B) to increase customer satisfaction with the insurers
C) to make the insurer more competitive
D) to promote customer loyalty
E) to provide to customers the service they require
F) to reduce the number of claims from customers
F
Whilst it may be desirable for the company to reduce the number of claims from its customers, a good level of customer service will not do this. The number of claims received will be elated to good underwriting
What is the definition of customer service?
Customer service refers to the broad range of activities that a company and its employees undertake in order to satisfy customers
