When an insurance company receives a complaint from a customer it is the “moments of truth”, says FMA CEO Samantha Barrass.
Speaking at the Insurance and Financial Services Ombudsman Scheme Conference on Wednesday 22 March, Barrass said that when it comes to insurance there needs to be a strong and enduring relationship between the company and their clients that’s based on trust.
“Complaints are the ‘moments of truth’ for your relationship with your customers,” she said.
“Handled well, we know they can deepen trust and enhance customer experience and customer advocacy. Handled badly, they are ticking time bombs for your customers and your reputation.
“Customer confidence in the quality of your complaint resolution is an important part of a strong consumer protection regime. That is why we are so interested in how you support customers to resolve matters when things go wrong.”
Barrass says when when customers aren’t happy with the way they have been treated they are more likely to tell friends and family than the company in question. According to a survey carried out by the FMA, not everyone who has considered making a formal complaint bother to do so.
“Complaints are your best opportunity to put things right, before you lose that customer,” said Barrass. “For example, they can be very useful indicators on where friction points are consistently occurring.”
And when complaints reach an impasse, she says it’s essential customers understand how to raise the issue with a dispute resolution service.
I am encouraging a genuinely open, non-defensive, mindset to complaints…
“Links to your complaints process – as well as how to contact the relevant dispute resolution scheme when things can’t be resolved – should not be buried in your terms and conditions, but front and centre and clearly available to your customers,” said Barrass.
“The FMA’s recent consumer experience survey also told us that only just over half of those who complained were satisfied with the process. That’s something to reflect on there as you consider your fair conduct programme under CoFI.
“I am encouraging a genuinely open, non-defensive, mindset to complaints – surface them, do not try to minimise them. This doesn’t just mean having a process in place, it also means being bold and proactive about showing customers how and where to resolve issues.”
Barrass advised companies not to wait for the conduct regime to come into force to make changes.
Read Samantha Barrass’ full speech here.