In light of the largest fine the FCA (or FSA) have ever issued, more and more FS firms are taking a closer look at their wider Conduct Risk management.
Most have the required minimum of MI in place.
Most CEOs say the right customer centric words with regards to strategy or culture. However, recent work with clients tells me that many firms recognise they still have some way to go, especially in the world of Insurance.
On recent training with customer insight teams, I’ve been sharing how insight can both help mitigate conduct risks and provide the evidence needed by the FCA. Such content covers the 5 aspects where FCA appear to focus, looking for sufficient focus on the customer in each of these areas:
- Business Model & Strategy
- Culture, Governance & Control
- Product Design & Approval process
- Sales practice
- Post-sales treatment
Working with skilled customer insight teams and sharing my own experience across general insurance, life, pensions & investments, reveals how customer insight can help guide practice and provide evidence in each area. Deliverables which are helping include:
- Consumer Segmentations
- Target Market Definitions (including Vulnerable Customers)
- Strategy Review processes (with insight input as critical)
- Product Development processes (with insight generation ‘baked-in’)
- Comms Development processes (again with insight embedded)
- Testing Comms for Behavioural biases (improvements to mitigate)
- Root Cause Analysis on NPS/CSat/CES for meaningful tracking
It would be interesting to see if that is your experience too. So, it’s time for another quick survey to see what you as Customer Insight Leaders are achieving in this area.
Please vote on each of the following statement. How do you feel each applies to the reality in your company?
Do let me know anything else you think should be captured in this poll. It would be great to hear your experience of using Customer Insight to effectively identify conduct risks, mitigate them and evidence good practice for the FCA.