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

2. 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

3. Complaints Received by Sector

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

5. Insurance Findings & Settlements

6. 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

7. 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?

8. 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

9. 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

10. 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

11. 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?

12. 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”

13. 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

14. 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

15. 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

16. Thank You