ABI says it won’t sit back and wait for FCA reform
The industry must do more to understand the root causes of consumer mistrust, according to Paul Evans, group chief executive of Axa UK and chairman of the Association of British Insurers.
Speaking today (3 November) at the ABI’s biennial conference, he said: “Despite the so many great things we do every day, and despite a reputation that is untarnished from the financial crisis of 2007, it is frankly horrifying that surveys tell us less than a third of customers trust us to do what is right.
“Less than a third - that means we are trusted less than banks. So is that perception or is it reality? Well I don’t think any of us could sleep at night if it was reality.”
He went on to say that the industry must “do much more to understand the route causes of mistrust” by taking “bold and collective action”.
“The reputation of the industry cannot be hostage to the slowest of us to move. From my discussion with members we don’t want to sit back and wait for the FCA to reform the industry,” stated Mr Evans, adding that only through real transparency can real trust be built.
Mr Evans also announced several senior appointments at the ABI.
Andy Briggs, chief executive of Aviva UK and Ireland Life, who already sits on the ABI board, will become deputy chair.
Seraina Maag, president and chief executive of EMEA for AIG, and Russell Higginbotham, chief executive Swiss Re UK and Ireland, have both been appointed to the ABI board.
Additionally, the ABI will be leaving its Gresham Street headquarters where it has been located for nearly 25 years and moving to a new premises at 1 America Square, in a move Mr Evans said would “save money and put the ABI at the heart of London’s insurance district”.
The organisation also said it would also have a new, more focused committee to better reflect the long term savings market, with a forward facing long term savings committee created to keep members ahead of the curve and a new legacy committee to deal with historic issues.
Elsewhere, Mr Evans mentioned that the ABI is launching two new member led initiatives to help the general insurance sector to build trust.
The first is working with the British Insurance Brokers’ Association to publish a new ABI and Biba code on vulnerable customers next month.
He said: “With the full support of the chairman of Biba we are now working on this to find common ground in this and in other areas which can improve the reputation of what is a great industry that we have a shared accountability to reform.”
The collective action seeks to address the address the perception that insurers don’t pay claims.
Mr Evans speech came following Aegon UK left the 230-strong ABI to lobby back in September, just a year after Legal & General ditched the trade body.
ruth.gillbe@ft.com
