In the Spotlight with Hannah Tasker, First Complete & Pink

We spoke to Hannah Tasker, General Insurance Manager at First Complete & Pink, about misconceptions in the insurance industry and how IPT will affect the day-to-day.

Related topics:  In The Spotlight
Amy Loddington
2nd December 2016
In The Spotlight

What steps can both providers and brokers undertake to improve the perception of general insurance?

Anyone working in the insurance industry often finds themselves having to defend the sector. Most of us have been there; listening to the friend or relative with the bleak tale about an insurance provider avoiding a claim due to a technicality which is unreasonable or unfair. Behind these tales, certainly in the intermediary market that I work in, these couldn’t be further from the truth. 

We should be proud of our industry as one that provides certainty to all levels of the economy, and one that is critical to a well-protected and functioning society. Insurance advisers are there to educate and advise on the most appropriate policy with the right levels of cover. Insurers exist to pay claims and we all want to get customers back on their feet at a time when they most need it. 

But the question is: how can the industry turn this perception around so that instead of being seen as a necessary evil, we are perceived to be ‘there to help customers when they need it the most’?

The problem is the true value of an insurance policy isn’t realised until a claim is made. Even then, a claim may be denied based on the terms of the contract, which is why it is difficult to manage expectations but all the more important why customers should receive advice at the point of sale. 

In my opinion, these are the steps that brokers and providers can take in order to improve the perception of general insurance:
•    Manage Expectations – educating customers before a claim occurs
•    Keeping the language simple – We can’t blame customers if the information we provide is unclear or complex. We need to ensure the terms and conditions are clear. Whilst we are in a highly regulated insurance environment, designed to limit confusion between insurers and consumers, this is still an issue where there is varying levels of understanding amongst customers. Naturally when expectations aren’t met, it leads to negative customer outcome. It is the adviser’s role to explain the good and the bad, and talk about what cover clients need.

•    Communicate the great work the insurance industry does – We don’t do enough to shout about the great customer outcomes that occur every day. We also don’t share enough about how many claims have been settled, how much this equates to, how long (or quick) they take to settle. We should make it our priority to share more real life case studies about how insurance has enabled real life customers to get back on their feet. We see this in life assurance, but not often in general insurance. Let’s blow our own trumpet and let everyone know what we do to help thousands of people.
•    Advocating the use of insurance advisers – Insurance by its very nature is complex but many believe they understand it, until they come to claim.  The best way we can improve expectation setting and broader education is through an insurance expert.  The value of an insurance adviser must not be under-estimated. They can assist in making the right call for customer needs, and educating them in what is and what isn’t covered. More emphasis needs to be made to ensure the right customers are getting the right advice from the right place.  

There is a misconception that insurers shy away from paying claims, how can the industry tackle this?

The media plays a strong part in the portrayal of the insurance industry. The focus is usually on the cases where things haven’t gone quite right and not the thousands of customers who have had a positive customer experience. 

There will always be some claims which are not paid out for due to a number of different reasons, however we can do more to educate customers to understand what is and what is not covered by their policies so that it doesn’t get to that stage.

As an industry we need to educate customers on making sure they have the right levels of cover by bringing to their attention any significant exclusions and endorsements. Let’s face it, most people only read the small print when they actually come to use the policy in the event of a claim. Again, it highlights the need for advice. We also need to find the right balance to ensure insurance fraud is prevented, without impacting on the genuine claimants.  

Larger insurers don’t always reveal GI claims data, therefore how can the industry address the transparency issue?

Larger insurers should reveal their GI claims data, and that’s how we address the transparency issue. There is nothing to hide and therefore I believe it would be healthy for these to be published across the board. If we do not reveal this information, we would be fuelling the misconception that insurers shy away from paying claims.

‘Lifting the lid’ on claims data doesn’t expose the insurance industry but highlights how much more the industry can do to educate customers on when they can claim, and what is actually covered.

What impact is Insurance Premium Tax (IPT) going to have on insurance? 

To be fair the latest increase – or some of it – was due to help support flood defences which can only be a good thing for both customers and the industry. 

Obviously the increase directly affects the cost of insurance, however other than making a policy more expensive, I don’t believe it will deter customers from taking out insurance. It is applied across the board, which creates a level playing field in terms of rating implications, and customers understand it is a ‘tax’ and not a charge applied by the insurer. If the rate of IPT continues to rise however, this may then impact the affordability of the perceived value of insurance against cost.

If you could see one headline about financial services in 2016, what would it be?

‘More customers getting the right GI advice’

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