ABI and the British Insurance Brokers’ Association (BIBA) have launched a joint Code of Good Practice to help insurers and insurance brokers recognise and help potentially vulnerable customers, who may need extra support when renewing motor and home insurance policies. Under the Code participating insurers and brokers will:
- ensure staff are adequately trained to recognise and understand potentially vulnerable customers at renewal and be able to offer flexible options to help address needs;
- periodically review legacy policies so they can, where possible, identify vulnerable customers to ensure they are aware of any more suitable alternative products now available;
- ask potentially vulnerable customers at renewal if their current policy and renewal terms meet their needs, and make clear the importance of reviewing their cover;
- consider if additional communication, for example a telephone call, is needed to help vulnerable customers through the renewal process; and
- ensure that the customer’s options, and how they can exercise them, are always clearly set out.
The Code came into effect on 1 January from which point insurers and brokers have 12 months to prepare for its commitments. (Source: ABI and BIBA Launch Industry Code of Good Practice)