How to identify and support vulnerable customers

Protecting vulnerable consumers is a key focus for the Financial Conduct Authority (FCA) and is arguably more important than ever due to the impact of coronavirus.

At Zurich, we have seen first-hand the effect of Covid-19 on customers’ financial and mental wellbeing. One example is a significant increase in the number of customers experiencing thoughts of suicide.

In its guidance for firms on the fair treatment of vulnerable customers published earlier this year, the FCA identifies a vulnerable customer as someone who, owing to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care.

It views vulnerability as a spectrum of risk. All customers are at risk of becoming vulnerable, but this risk is increased by having characteristics of vulnerability. These could be poor health, such as cognitive impairment, life events such as new caring responsibilities, low resilience to cope with financial or emotional shocks and low capability, such as poor literacy or numeracy skills.

Kelly Anderson, customer care operational delivery manager at Zurich, emphasises the importance of looking beyond the label.

“Customers may not want to be labelled as vulnerable,” she says. “While we agree there needs to be reference to vulnerabilities, we want to remove the stigma from having a label as a vulnerable customer and understand our customers’ needs, how their wellbeing is affected during their experience with us and the overall customer outcome.

“We don’t believe there’s a checklist or specific criteria to decide if a customer is vulnerable. We all go through difficult times. It is important to be aware of the ever-changing world and the demands and pressures that anyone can find themselves under at some point in their lives that may mean they require support.”

The FCA guidance affects all financial firms and highlights the actions they should take to understand the needs of vulnerable customers to ensure they are treated fairly. Zurich is working with frontline staff and intermediaries to help identify, engage, support and signpost help to those experiencing difficulties.

Identify

Covid-19 has created adversity for many people. At the same time, the reduction in face-to-face social contact has made it harder to identify when someone may be going through a challenging time. So, what are the signs to look for?

Signs or triggers that may occur during a phone or video call or a meeting with a client include phrases such as:

• I can’t pay
• I’m having trouble paying
• I can’t read my policy renewal
• I can’t understand the letter you’ve sent me

Other signs of a vulnerability may include:

• Extreme moods
• Poor concentration or finding it hard to make a decision
• Feeling overwhelmed by things
• Being tearful or emotional

Engage

It is important to not only recognise these indicators but feel comfortable to engage with customers who may have found themselves in a vulnerable situation.

A range of practical tools can help. The Royal College of Psychiatrists and Money Advice Trust have developed three protocols, TEXAS, IDEA and CARERS, to help people manage conversations around vulnerability. The BLAKE protocol provides a framework for responding effectively to customer disclosures of suicidal thoughts or intentions.

“There is no one-size-fits-all approach and these tools can be used in a tailored and flexible way to help us listen and engage with dignity, sensitivity, respect and compassion,” says Kelly.

“Our goal is to make sure that everyone in our company has the skills they need to support customers’ wellbeing. Whether that’s managing difficult conversations or signposting them towards external organisations that can provide extra support, we want to make sure our employees feel empowered, comfortable and confident when helping our customers in vulnerable circumstances.”

Support

Many people do not like to talk about their medical history and some may find it distressing, whether related to mental health or a physical health condition like cancer or a heart attack.

Advisers have a key role to play in supporting clients through the application process. We have three options to help people apply in the way they find most comfortable.

The quickest way to apply and get a decision is for the adviser to take the client through our interactive online application, which automatically prompts the adviser for the information we need.

“We understand that some customers may feel anxious and others may struggle to understand things,” says Nicky Bray, chief underwriter at Zurich. “We have tried to make the questions as clear as possible and only ask about what we need to know.”

Customers can opt to use our delegated underwriting option whereby they answer the questions themselves online. A third option, for very vulnerable customers, is a data capture form, which can be filled in and sent either to the adviser or directly to Zurich.

Another way in which advisers can support customers is by managing their expectations. They can use our pre-application tool to guide the client on the potential outcome. And they can offer reassurance when we need a doctor’s report or nurse screening – in one-fifth of cases we require additional information.

Once a customer, access to Zurich Support Services is available 24 hours a day 365 days a year. In some exceptional cases we have provided these services to non-customers.

People talk to us about all sorts of things from seeking counselling for emotional issues, such as anxiety or depression or coping with bereavement or loss, to practical help with achieving a better work-life balance, understanding employment rights or managing household finances.

We offer range of communication tools to support customers, too. We can help the visually impaired by providing documentation in large print, Braille or audio. The hard of hearing, deaf or speech impaired can communicate with us through the Relay UK app or use a textphone. British sign language users can use SignLive to connect to an online professional interpreter via a mobile device or computer and call us when it suits them.

Other services are available for those whose first language is not English, who have issues with literacy and numeracy and those who would like to authorise someone to act on their behalf.

Signpost

We can also signpost customers to external help through the network of partnerships we have forged through Zurich Community Trust.

Useful organisations that can provide free advice include Age UK, Alzheimer’s Society, Citizens Advice Bureau, Dementia UK, Mind, Money Advice Trust and Samaritans.

Our customer wellbeing champions and mental health first-aiders are fully trained in the support available to customers, both internal and external, and provide a useful resource for advisers whose clients may be showing signs of vulnerability.

“We want to work together with intermediaries to help support customers – it’s about us all coming together to help each other,” adds Kelly.

“At Zurich, we listen to our customers’ feedback and use it to inform what we build next. This applies to our most vulnerable customers, too. By listening to their experiences, we can better understand their challenges and needs, and build products that offer support.”

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