"The FCA’s latest regulation demands that firms throughout the financial service sector get to grips with vulnerability and ensure they are appropriately catering for the needs of these customers"
According to the findings, motor and home insurance customers are more likely to get the same or better prices at renewal reflecting the strong performance of insurers in delivering good outcomes,
It analysed data from more than 25,000 home insurance and 25,000 motor insurance customers for the report Vulnerable customers in the age of the cost-of-living crisis to assess how insurers are responding to the FCA’s focus on vulnerable customers.
Consumer Intelligence found 44% of vulnerable and 51% of highly vulnerable home insurance customers received the same or better at renewal while 44% of vulnerable motor customers and 50% of highly vulnerable motor customers received the same or better price at renewal.
The comparable figures for non-vulnerable customers in home insurance were 42% receiving the same or better price at renewal and in motor 46% receiving the same or better price at renewal.
The report shows up to 42% of home insurance customers are potentially vulnerable with 15% highly vulnerable while 41% of motor customers are potentially vulnerable including 13% who are highly vulnerable.
Consumer Intelligence’s criteria for assessing vulnerability included age, income, length of time with an insurer as well as data on employment and socio-economic group.
Its analysis shows vulnerable customers are less likely as a group to shop around for home and motor insurance than non-vulnerable customers with higher numbers of people who don’t shop around at all. Vulnerable customers however tend to use price comparison websites more.
Ian Hughes, Chief Executive of Consumer Intelligence says: “The FCA’s latest regulation demands that firms throughout the financial service sector get to grips with vulnerability and ensure they are appropriately catering for the needs of these customers.
“But understanding this through your own lens won’t be enough. It is vital providers gain an understanding of how they benchmark against the market and their peer group in terms of their performance in delivering good outcomes for vulnerable customers. By doing this, providers will be able to identify where improvements need to be made and take decisive action."