Two out of three consumers say the speed at which insurance claims are paid is the key driver to assessing the value of its product.
This research, from MetLife UK comes ahead of new Consumer Duty regulations, that will come into force at the end of July. Billed as being one of the biggest shake-up to the consumer regulatory landscape, these rules aim to raise standard by requiring provider to deliver ‘good value’ and ‘good outcomes’ for customers.
Against this backdrop MetLife’s ‘meaning of value’ research show consumer also consider flexibility, ease of access and choice as indicators of ‘good value’.
While 72 per cent of consumer said speed of paying claims was a sign of a good value protection product, 68 per cent said flexibility was an indication these policies offered good value for money, particularly in relation to ‘flexing’ them to their individual lifestyle needs.
A simple application process for insurance and protection products was also a strong indicator of value for 61 per cent of respondents.
MetLife UK’s head of propositions Justin Harper says: “With the introduction of the FCA’s new Consumer Duty less than two months away, our research clearly highlights how consumers perceive ‘good value’ when considering financial protection.
“Unsurprisingly, speed and efficiency of claim payment is a top priority for protection customers – the point of claim is their moment of truth.
“Our research also points to consumers wanting and valuing greater diversity. So, it’s vitally important that we, and the protection sector, continue to challenge ourselves to improve and innovate. To deliver good value, our products and services need to reflect and anticipate the ever-changing lives and evolving needs of our customers.”