Effective Customer Complaint Handling Presentation to Insurance Ireland’s Annual President’s Conference By Ger Deering Financial Services Ombudsman

The Financial Services Ombudsman Mediate Investigate Conduct Oral Hearings Adjudicate Award compensation up to €250k Direct rectification Publish complaint records Findings are legally binding, can only be appealed to the High Court

Complaints Received by Sector

Insurance Complaints *Miscellaneous includes other categories such as marine, agriculture, computers mobile phones and pets

Insurance Findings & Settlements

Avoiding Disputes Clear communication, in plain English, can avoid or resolve disputes and is particularly required when: Selling the product Providing policy documents and warnings Dealing with claims Dealing with complaints Entering an insurance contract is a serious business and should be treated so by both parties

Can a Consumer know… What non-disclosure is? What a material fact is? What would reasonably influence a prudent insurer? What areas “are prone to storm”? Should the insurer have predicted Barney? What “areas are prone to crime”? Are there areas that are not? Whether material (the other “material”) is incombustible?

Utmost Good Faith A contract of insurance is a contract of the utmost good faith on both sides “The Office of the Financial Services Ombudsman may wish to consider the possibility that a reasonably assertive claims policy may have strayed across the line into an unreasonably avaricious claims policy which sought to dislodge a genuine claim on specious grounds under the ostensibly legitimising umbrella of uberrimae fidei” Deirdre Earls –v- Financial Services Ombudsman & FBD Insurance plc High Court Unreported, Barrett J., 09 July 2015 – Rec. No. 2014/506 MCA

Resolving Complaints Complaints can be: An early (or not so early) warning system A tool for measuring performance & customer satisfaction Early Resolution of complaints can: Keep or win back customers Maintain or enhance reputation Save time and money

Early Resolution We encourage parties to: Avoid causing complaints – good quality information resolve issues before coming to us Encourage discussion and meaningful engagement Best outcome is resolution without the need for adjudication Our aim is to resolve disputes/complaints at the earliest possible opportunity This should be the aim of the service provider too

Mediation We recommend mediation as the first and best option to resolving complaints/disputes because it is: Informal Confidential Potentially quicker Voluntary Offers a better possible range of solutions Why then do so many providers reject this option?

Why are people so reluctant to engage? Not sure what it achieves We have set out our final position – so no point Perception that it shows a weakness The need for the “Harp” or someone else to make the decision Creates an expectation of payment Fruitless unless we had money to offer Resource requirements “The lack of practical experience of mediation would indicate that there are few “champions” for mediation within the financial services industry”

International Financial Dispute Resolution Australia Telephone Conciliation Fast Track Conciliation (1 Hour) Conciliation Conference Workshops for Financial Service Providers New Zealand Facilitation (mainly recorded telephone calls) Infrequent use of face-to-face conciliation UK 9 out of 10 cases resolved through informal means - mediation

Where the Irish FSO is going: Amalgamation of Financial & Pensions Ombudsman Strategic & Operational Review Implement the simplest, most efficient, proportionate and effective complaint resolution processes Resolve disputes: at the earliest possible stage as informally as possible as fast as possible Only when necessary, proceed to formal investigation, oral hearings and adjudication Achieving this will require the support and co-operation of providers

Reducing and Resolving Complaints Communicate clearly Provide plainly written documents highlighting the essential terms Provide clear warnings of the consequences of certain actions /omissions Respond, promptly proportionately and fairly to complaints Provide appropriate, proportionate dispute resolution Empower your people to engage in the FSO’s new dispute resolution processes in a meaningful, productive and proportionate manner

Thank You