Davies Event Highlights Needs & Treatment of Vulnerable Consumers

Latest from Davies Group, who are stepping up support  for vulnerable consumers in the UK insurance and financial services market. A recent conference organised by Davies highlighted some of the issues being addressed. Here’s the word;

Experts from Davies, the leading professional services and consulting business serving highly regulated markets, have highlighted that significant gaps still exist in identifying and protecting vulnerable consumers within the insurance and financial services sectors.

The inaugural Davies Vulnerable Customers Summit (held on 1st November) brought together key figures from across the sector to discuss the treatment of vulnerable customers and what the industry can do to improve standards. Guest speakers included representatives from The British Standards Institution (BSI), Alzheimer’s Society, The Collaboration Network, Henley Centre for Customer Management, and the Vulnerability Registration Service (VRS).

The event called for better identification of customers through improved use of technology, empowerment and upskilling of staff and ensuring c-suite buy-in as crucial for developing an organisational climate in which vulnerable customers are supported and protected at all times.

Despite regulatory changes such as the FCA’s Consumer Duty, many organisations are still failing vulnerable consumers, speakers warned. Quoting Davies’ Consulting Director, Phil Michell, “Vulnerabilities like dementia change the dynamic completely, and companies need to rethink their customer service strategies. Although, this isn’t just about serving and meeting the needs of such customers. The advantages of such organisational changes and the subsequent realignment of focuses will propagate right throughout, benefiting all customers, employees, and stakeholders.”

Other key vulnerabilities raised included mental health issues, financial limitations, lack of digital access, low capability, and recently experiencing negative life events.

Professor Moira Clark of the Henley Centre for Customer Management emphasised that we need to stop looking at customer vulnerability with such a narrow lens. “Vulnerability encompasses far more than just financial and age limitations.” She stated, “We all know 70, 80, or 90-year-olds that are still sharp and perfectly capable. The key lies in not making assumptions.”

The VRS aims to provide a centralised database where consumers can register vulnerabilities. This would allow companies to identify and proactively assist vulnerable customers. However, many expressed hesitation around sharing customer data, even for positive purposes. With stringent data laws and regulations, some attendees worried whether they could legally share information related to customer vulnerability and health.

Michael Anderson, Vice President of Client Management at Davies, concluded that “Despite growing awareness, significant aspects of customer vulnerability are still not being adequately addressed in financial services. We need decisive action from leadership to meet their duties and serve this critical demographic. We must realise that if we get it right for vulnerable customers, we get it right for everybody.”