Treating customers Fairly

The Regulatory Environment:-

Regulation on the fair treatment of customers is the responsibility of the FCA. Regulated firms must demonstrate such.

Outcome 1: Customers can be confident that they are dealing with firms where fair treatment of customers is key to the corporate culture

Outcome 2: Products and services marketed, meet the needs of the customer group and targeted accordingly.

Outcome 3: Consumers are provided with clear information and kept informed, before, during and after the sale

Outcome 4: Where consumers receive advice, the advice is true and takes account of their circumstances

Outcome 5  Consumers are provided with products that perform as firms as let them to expect.

Outcome 6: Consumers do not face unreasonable post-sale barriers  by firms to change products, switch comp, claim or complain

Application to Claims Handling:-

ICOBS Cha 8 – claims handling where an insurer should document its approach to:

                           a. handles claims promptly and fairly 

                           b. provides reasonable guidance to help policyholders make a claim and information on its progress

                           c. does not unreasonably reject  claim

                           d. settle claims promptly once settlement terms are agreed.

                           e. Motor Vehicle claims in the EEA in addition, are subject to more onerous regulation,

                           f.  All intermediaries must manage their conflicts of interest and its best to document these. 

The Consumer Rights Act (CRA) 2015:-

    The FCA rules on claims handling do supersede the CRA 2015, even though the CRA brought in a number of

     provisions in regard to the supply of services. 

    The main impact under CRA 2015 for claims handling are:

                1. Policy conditions and exclusions must be identifiable and understandable and not hidden away.

                2. To perform a service within a reasonable time.