New service for insurers to be launched ahead of Consumer Duty regulation

Consumer Intelligence will launch a new service to help insurers measure and monitor their performance ahead of the FCA’s Consumer Duty regulation.

In a statement released earlier this week (6 June 2023), the market insights business said its Consumer Outcomes Benchmarking tool would provide an independent benchmark for insurers based on consumer research into consumer outcomes.

It added that the service had been geared towards home and motor insurance providers.

“Our new service is a response to an unmet need in the insurance industry,” said Catherine Carey, head of consumer strategy at Consumer Intelligence.

“It offers motor and home insurers an independent, data-driven view of their performance against a backdrop of consumer outcomes, enabling them to prioritise critical issues and identify areas where remedial action might be required.”

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The Consumer Duty regulation, which come into force on 31 July 2023, sets out a slew of updated regulations for insurance firms and other financial services firms that must be implemented.

Consumer Intelligence said a key issue for insurers was that they often lack insight into their relative market position.

Earlier this year (22 May 2023), Carey told Insurance Times “insurers often have a misguided belief” that their internal view of compliance is sufficient for meeting the FCA’s requirements.

The service has therefore been designed to provide insurers with an unbiased view of their performance within the broader market context.

It also allows for performance tracking over time.

“It offers a constant gauge of compliance and progress, enabling insurers to monitor the effectiveness of their remedial actions,” Carey said.

“Furthermore, we provide support in interpreting the data, helping firms navigate the complex regulatory landscape.”