Insurance Cares: Anyone can be vulnerable

In an ideal world people would never need to make an insurance claim. But when they do, it means something’s gone wrong. So perhaps more than any other type of financial business, insurers and brokers may routinely need to support customers in vulnerable circumstances.

And as insurers will be aware, a single event can have a huge impact. Whether it is illness, bereavement or another unforeseen event, someone who’s been on top of things can very suddenly be left in a totally different position.

Faced with the reality of rules, terms and conditions, making a decision about a claim can be challenging even when vulnerability isn’t a factor. But this isn’t a niche issue:  vulnerability could affect any of our customers – or any of us.

Signs
People may be uncomfortable asking for help – and almost certainly won’t use the word “vulnerable”.  So for insurers and brokers, as well as the ombudsman, it’s about being aware of the signs that someone might need extra help.

And, regardless of the outcome of someone’s claim or complaint, we need to be ready to give people the support they need in an effective, sensitive way that’s right in their own individual circumstances.

Understanding these issues should be seen as equally important to any other aspect of complaint handling or financial knowledge.

Last year we asked the Money Advice Trust to provide bespoke training to help us better identify and respond to signs of potential vulnerability. We’ve also set up a network made up of colleagues across our service, who can support our case handlers to give people effective help if they need it.

Collaboration
Doing the right thing by a customer will also often involve us and businesses working together. Since 2015, the complaints-handling rules have allowed us to get involved much earlier, before the business has investigated what’s happened.

Recognising how valuable this can be in certain circumstances, a number of businesses, including insurers, have told us we can step in whenever their customers want this to happen.

Taken together with the changes we’ve made to make our service more flexible and responsive, this means, when it really matters, we’ve been able to resolve problems in days or even hours.

We’ve been really encouraged by businesses’ willingness to work with us like this. I’m confident that will continue into the future, as work by regulators, businesses and others develops our understanding of the complex – but importantly, the everyday – challenges that vulnerability presents.

Caroline Wayman is chief ombudsman and chief executive at the Financial Ombudsman Service.