As part of our Consumer Duty preparations, we have reviewed our existing products and services to consider how well they meet our customers’ needs. We’ve also considered whether they represent fair value for all customers, including the vulnerable.
We are working to meet the needs of our customers by reviewing our customer communication materials and documents, including our website, policy documents and emails through a consumer duty lens. We’re making it easier to support our customers when they inform us of any requirements they have. Staff training is underway and we’re adapting processes and products based on customer insight. We are also developing new management reporting to evidence that we are delivering good outcomes for customers.
Full details of the changes required is available in the FCA’s final published guidance.
We will continue to work with our brokers and suppliers to maintain existing commission arrangements. We do not anticipate any changes to commission levels because of the introduction of Consumer Duty. If this changes in the future, we will let you know as soon as possible.
We’ll need your continued help to recognise vulnerable customers at point of sale and to identify the type of customised support they may need. Capturing these needs at the outset is key to delivering the seamless, customer centric experience we’re aiming for.
More information on how to treat vulnerable customers has been published by the FCA (Financial Conduct Authority).
The Financial Conduct Authority is still consulting with the financial services industry on how to manage customers who are in financial difficulty. They published some draft guidance in January on supporting customers in financial difficulty which we are using to review our current processes. The final guidance will be published in time for its introduction alongside Consumer Duty in July 2023.
We will continue to use our existing communication channels with all our broker partners and suppliers and where required we may publish additional information online.
The Financial Conduct Authority has published information on all aspects of the new Consumer Duty. The Consumer Duty final guidance was published in July 2022 and they have published other guidance on specific aspects of the Duty:
A new Consumer Duty Feedback to CP21/36 and final rules (feedback from the FCA to Financial Services industry on items raised during consultation window)
FG21/1 Guidance for firms on the fair treatment of vulnerable customers (final guidance – and rules – on treating vulnerable customers)
CP23/1: Insurance guidance for the support of customers in financial difficulty (fca.org.uk) Financial watchdog warns insurers to protect customers’ wellbeing during cost of living squeeze | FCA
If you have any unanswered questions, please send them to our Consumer Duty mailbox at: axaretailconsumerduty@axa-insurance.co.uk or contact your relationship manager.
