The British Insurance Brokers’ Association (BIBA) and the Association of British Insurers (ABI) have announced that they are working on a code for managing the insurance renewals of potentially vulnerable customers. The code will be voluntary for BIBA and ABI members and, according to the ABI, will aim “to bolster greater trust between insurers and customers”.
The code will apply to motor and home insurance customers, and will put in place measures to support individuals whose personal circumstances mean that they may not be able to consider the alternatives which are available to them at renewal, and may simply renew their policy each year without checking or understanding other options which may be available.
The code will aim to ensure that these individuals continue to have cover in place which is appropriate and which meets their needs. Insurers and brokers that comply with the code will undertake to train staff, improve business processes and tailor their customer communications, in order to help them deal appropriately with vulnerability at renewal.
The ABI and BIBA have indicated that they aim to publish the code by the end of the year.