MorganAsh welcomes CII’s new customer vulnerability guidance

New guidance from the Chartered Insurance Institute (CII) and Personal Finance Society (PFS) released this week, “significantly moves the dial” on vulnerable customer management in the insurance and personal finance sectors, says leading customer vulnerability firm MorganAsh.

The CII’s new guidance paper, called ‘Supporting vulnerable customers: a practical guide for insurance and personal finance firms’, is designed to help firms within the insurance sectors take the principle-based guidance of Consumer Duty and turn it into a practical action plan.

The paper, published by the CII, has contributors from across financial services, including experts on Consumer Duty and specialists in vulnerable customer management. It has been extensively peer-reviewed – as well as receiving input from people with lived experience of vulnerability.

Andrew Gething, managing director of MorganAsh and himself a contributor and reviewer of the guidance, said that MorganAsh welcomes its publication and supports the initiative to help insurance firms, advisers and wealth managers on their vulnerable customer management journey.

“This guidance is a real step forward,” says Gething. “It’s comprehensive, detailed and practical. A lot of firms have found the principle-based Consumer Duty to be difficult to translate into practice, having been used to more prescriptive legislation. However, the principles provide immense freedom for firms to implement the Duty intelligently and in their own way. This is a kind of roadmap which shows firms the most effective routes towards unlocking Consumer Duty’s principles and show what they can mean in practice.”

MorganAsh has developed the leading vulnerable customer management tool, MARS to help firms. It can be used as a standalone system or integrated to other systems via API (application programming interface). MorganAsh also provide a range of workshops to help firms navigate their own customer vulnerability journey in the most effective way.

“The guidance will help a lot of firms,” says Gething. “Everyone in the sector should read it. Unlike a lot of previous third-party guidance, which simply repackages what the FCA says, this is entirely new content. I know that this will lead to transformational thinking in the sector.”

Matthew Hill, chief executive of the CII, commented: “Effective vulnerability management is about more than regulatory compliance, it’s about creating a fairer, more resilient system. Firms that embed the principles of this guide into their culture and operations will not only meet expectations, but also build stronger customer relationships and reputations.” 

Carla Brown, president of the PFS, added: “I welcome this guidance as a significant step forward for our profession. Supporting clients in vulnerable circumstances is fundamental to good financial planning, and this practical framework gives firms clear direction on how to embed that responsibility into everyday practice. Our community is committed to raising standards and ensuring that every client, whatever their situation, receives the care, understanding and outcomes they deserve. This publication will help professionals across the sector strengthen their approach and, ultimately, deliver better experiences for the people who rely on us most.”

Johnny Timpson, chairman of MorganAsh and Absolute Military, said: “As a Financial Inclusion Commissioner and as Chair of specialist armed forces broker Absolute Military, I welcome the Chartered Insurance Institute’s Vulnerable Customer Guidance that supports the ambition of the Government’s Financial Inclusion Strategy and FCA Consumer Duty Regulation. I’ve long held that the test of our progress as an industry and profession together with the delivery of our professional body’s Royal Charter promise should not simply be measured in adding to the abundance of those we serve and/or improving their resilience to perils and shocks but importantly, in ensuring that the vulnerable customers we serve enjoy the same access, inclusion, protections and outcomes as anyone else.” 

The guide is available for download from the CII.