Modern Insurance Magazine Issue 62

FEATURES
Just a
Thought
from Eddie Longworth
Suppliers
Must Also
Deliver
Consumer
Duty
Obligations
At a recent meeting
of around 50 different
representatives within
the claims supply chain -
spanning repair, IT, legal,
and other sub-sectors -
there was an interesting
discussion around the
new Consumer Duty
rules. The meeting had
a collective sigh of relief
from suppliers, who are
not directly part of the
regime.
We know that insurers have a whole new
host of things to think about, plan for,
and implement. But the perception that
suppliers have escaped the ‘burden’ of
these new regulations is simply incorrect.
Any supplier’s key role is to help meet the
needs and desires of their clients (at a profit
to themselves), and so logic dictates that if
a client has Consumer Duty obligations to
meet, then the supplier must also be a part
of that solution. Nor am I referring just to
those suppliers that may have some formal
delegation of claims management authority.
Every supplier of any element of the
claims journey must understand these new
requirements fully, and leap to offer new
solutions that will help their clients.
Gaining Competitive Advantage
Surely those suppliers that are first in the
queue to offer their support and services
will be looked upon most favourably when
the next batch of tender documents arrive?
The question around ‘added value’ that a
supplier could proffer as part of the tender
response is invariably filled with corporate
waffle or, even worse, financial inducements
that have never been asked for.
Instead, it would be a refreshing change
for a supplier to position themselves as a
firm with a genuine understanding of the
new needs of their clients, and respond
accordingly - not that you should wait
until the next tender comes along to gain
advantage! I wonder how many suppliers
have proactively started a conversation
with their Supply Chain Manager or Claims
Director in order to throw their hat into the
ring as being part of potential Consumer
Duty solutions…
Proactive Support Wins the Day
In a great many instances, it is the
supplier that has direct interface with the
policyholder, and will be the ‘face’ of the
claims department. But even where this is
not the case (IT companies, for example),
there is still a continuous obligation on
suppliers to build system, process, and
people skills/knowledge around helping the
insurer to work within the new regime.
Of course, I am aware that suppliers already
provide a great many supportive services
above and beyond their core products. But
that is the name of the game. Tesco does
not supply ‘free’ parking in addition to their
core food and associated products because
they really want to – it’s because that is
a support service that their customers
demand and expect. It’s part of the total
package.
The same goes for suppliers who expect
to win business from the insurer and
claims management communities. If your
clients have a need to fulfil Consumer Duty
regulations, then it is the responsibility of
suppliers to be at the forefront of providing
some of the answers.
Fortune Favours the Brave
Of course, it may cost money. It will
certainly take up management time. There
will be a need to change operational
processes, and perhaps new IT solutions
will be required as well.
But if that is what’s needed – and you want
to stay or become a premier supplier to
your clients – then you need to make a
start right now. The new regime is still in its
early days, and this provides a tremendous
opportunity for suppliers with foresight and
commitment to get in at the ground level,
embedding
themselves
into any new
elements that
the claims
department
needs in order
to comply
with their
Consumer Duty
obligations.
Get on with it!
Eddie Longworth,
Director, JEL Consulting
MODERN INSURANCE | 39