Chapter 13- Customer Service

Question 1

What is customer service

Answer 1

It’s a combination of marketing, strategic planning, research and systems

Question 2

What is an external customer

Answer 2

A consumer is a type of external customer.

Question 3

What is an internal customer

Answer 3

An employee of an insurance company who receiver service from other employees of the company

Question 4

What are the 3 important buts or customer service

Answer 4

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

Question 5

What are the normal customer service activities

Answer 5

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

Question 6

What are the benefits of providing customer service

Answer 6

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

Question 7

What are the 4 benefits to a customer for putting insurance through a professional insurer

Answer 7

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

Question 8

What 3 things at must customer service standards be:

Answer 8

Realistic

Understandable

Measurable

Question 9

What is a performance standard

Answer 9

A level of performance which actual performance can be measured

Question 10

What are internal standards

Answer 10

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

Question 11

What do industry standards do

Answer 11

Allows a company to compare itself tocother companies in the same business

Question 12

What is competence defined by the FCA

Answer 12

Having skills, knowledge and expertise to carry a function without the need for supervision

Question 13

What is a key feature or the PRA when considering training

Answer 13

Effectiveness of training and its link to competence

Question 14

What are authorised firms obligated to do in respect of training

Answer 14

Maintain a register of those who are competent and must be able to demonstrate the means by which competence has been measured

Question 15

What does principle 6 require firmed to do under the PRA and FCA rulebook

Answer 15

Treat customer fairly

Question 16

What is one of the primary areas of the FCA

Answer 16

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

Question 17

What are the 6 outcomes published by the FCA

Answer 17

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

Question 18

How do firms exams and monitor every process in the context of customer service

Answer 18

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

Question 19

What are the minimum requirements of the FCA for claims handling set out in

Answer 19

ICOBS

Question 20

What does the consumer rights act do in regards to claims handling

Answer 20

All claims should be dealt with in a reasonable time

Question 21

Under ICOBS where an insurers rejection of a claim is considered reasonable it is for:

Answer 21

Non disclosure

Non negligent misrepresentation

Breach of a warranty or condition.

Question 22

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

Answer 22

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

Question 23

What is the definition of customer service?

Answer 23

Customer service refers to the broad range of activities that a company and its employees undertake in order to satisfy customers