Almost three quarters (72%) of consumers believe the speed of any claim payment is the key driver of “good value” according to new research from MetLife UK.
The research measured consumers attitudes towards protection ahead of the Financial Conduct Authority (FCA) implementing the new Consumer Duty regulation from 31st July 2023. Touted as one of the biggest changes in the retail consumer regulatory landscape, the new duty, aims to raise standards for consumers with a strong emphasis on delivering good value and outcomes for customers.
Against this backdrop, MetLife’s ‘meaning of value’ research shows that consumers also consider flexibility, ease of access and choice as significant indicators of good value
- Over two thirds (68%) of consumers said they viewed protection products as providing “good value” based on the ability to flex them to their individual lifestyle needs.
- A simple application process for insurance and protection products was also a strong indicator of value for 61% of respondents.
- 41% of consumers said having more varied/diverse set of life and health insurance and individual protection products, and providers, would provide them with better value. This is particularly true among younger age groups, with over half (53%) of 18 to 34 year-olds supporting this view.
Commenting on the findings, Justin Harper, Head of Propositions at MetLife UK said: “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. While we can improve even further, we’re proud that in Q1 2023, we paid 90% of all claims within just 5 working days.
“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.
“At MetLife, our ongoing commitment is to better understand the expectations and pressure points of our customers and tailor our new and existing offerings accordingly. It’s essential too, that we do so in partnership with advisers and, together, we provide the all-round holistic support our customers deserve.”