Major new insights into treating customers fairly
24 March 2014 | Surveys, Reports and Ratings | General | Metrpolitan
In money matters, consumers say equality is an important part of being treated fairly.
The Metropolitan Fairness Feedback is the first-ever, in-depth look at what policy holders and investors in the mass market really want in terms of fairness and how the industry is perceived to be delivering on those needs.
Financial services industry regulator, the FSB, has recently established an important series of rules for insurance and investment companies under the title of Treating Customers Fairly (TCF) which defines fairness in terms of;
• clear information
• suitable advice
• fair treatment that is central to company culture
• product meeting needs
• product meeting expectations
• no unreasonable barriers to switching, claiming and complaining.
However, this new survey conducted by Metropolitan shows that most South Africans in the mass market have a different view of what matters in terms of true fairness – and they perceive equality as far more important factor than the principles currently outlined by the FSB.
South Africans believe they should be entitled to the same benefits, rates and service irrespective of race, gender, age, wealth, language, location, disability and health status.
• Of the existing FSB TCF principles South Africans say that ‘frequent and open communication’ is the highest priority.
Official TCF principles ranked by consumers in being treated fairly.
What matters to consumers in being treated fairly?
The survey also establishes that industry players serving the mass market are doing reasonably well in treating customers fairly, but needs to improve markedly in several areas especially in communicating clearly and constantly with consumers about their policies and benefits.
Key findings
• South Africans in the mass market believe they should be entitled to the same
benefits, rates and service irrespective of race, gender, age, wealth, language,
location, disability and health status.
• The industry overall is scored at 8.5 out of 10 in this survey for its current fair
treatment of customers.
Major implications
• Customers describe and understand TCF differently to the regulators – the
FSB possibly needs to re-consider its TCF regulations in light of the mass
market perceptions.
• Challenges to current actuarial models which discriminates in favour of the
young and healthy.
• The industry needs to improve the provision of services in all SA languages.
• The industry needs to improve its performance in TCF – 8.5 in this generally
uncritical market is viewed as a moderate score.
Comment from Metropolitan:
"It is important to apply the formal expressions of TCF but it is equally important to obtain the consumers’ view of what matters to them in terms fairness and to align the two,” said Belinda Faulkner, Metropolitan Brand Executive.
Methodology of the survey
• The Metropolitan Fairness Feedback survey was conducted by Plus94
Research during 2013.
• 6 x focus groups (Gauteng, Cape Town & KwaZulu-Natal) to unpack
consumer fairness definitions.
• Quantitative study on a nationally representative sample (1150 people)
conducted to develop TCF scores.
