The event, at the QEII Centre in London, was hosted by the Chartered Insurance Institute (CII)
Peter Hales, incoming president of the CII and sales and marketing director of Norwich Union, suggested that matters will improve if levels of financial literacy among consumers are raised. "A lack of financial capability deters people from taking advice. We need to tackle the problem of people not understanding that they have to make more provision for their own financial well-being," he said.
Mr Hales also said the industry must take the lead in improving communications regarding the way advisers are remunerated: "We should not wait to be regulated in this matter. The menu of commission charges has not been the breakthrough people hoped and consumers are confused. If we increase transparency and consumer understanding, it will be a win-win situation for the industry and its customers."
Julian James, director of Worldwide Markets at Lloyd’s of London, said the market as a whole would benefit when companies improve their individual situations. He said: "Each organisation has to fix its fundamentals, raise standards, aim for profitability and reform its business processes. It then has to communicate its vision via its brands. If we all do this, the industry will reap the rewards in terms of the way it is viewed."
Ian Stuart, CEO UK General Insurance of Zurich Financial Services, emphasised the need for simplicity and clarity throughout the industry. "Customer expectations have changed. They have more disposable income but they experience time poverty. This impacts on the way they relate to service providers. We must react to this and deliver on the promises we make," he said.
Peter Hubbard, CEO of AXA Insurance UK, called for the industry to improve customer relations: "We must live and breathe the customer. We must understand that we are not competing just with other insurers. We are competing for a share of the customer’s wallet. And we should not be afraid to aspire to profitability."
Mr Hubbard pointed out that the £908 million profit reported by Tesco for the first six months of this year is likely to be greater than the combined profits of all UK general insurance companies for the same period.
Toby Foster, chief executive of UK Retail at Marsh, echoed calls for greater transparency in broker remuneration. He said the Spitzer enquiry into undisclosed broker earnings and contingent commissions paid by insurance companies served as a wake up call for the industry as a whole. "We as an industry need to eradicate any suggestion of conflict of interest. At the same time, we must emphasise the value of the industry, to individuals, companies and the economy as a whole," he said.
Underpinning the range of comments and opinions was an agreement that the industry should do more to build a positive presence among consumers. The role of the CII as a provider of qualifications and training materials and as guardian of a Code of Conduct and Ethics for the industry was cited as pivotal for this exercise.
