Insurers ‘need a new mindset’

Chartered Insurance Institute(CII) praised continuing efforts to raise standards in professionalism, but said the sector needs to address issues of concern such as the referral fees debacle and the collateral damage from the banking crisis generally.

The report, ‘ Upon the door of every cottage: Protecting the public through general insurance’, sets out a range of “frank and considered views by stakeholders” to challenge the market norms in order to stimulate general insurance initiatives and fresh thinking to meet the public interest challenges of the future.

Laurence Baxter, Head of Policy & Research at the CII, said:

“The general insurance profession, and the sector as a whole, is on a journey towards better public trust and confidence.

“The essays within the CII’s report illustrate how public attitudes towards insurance are changing, and their expectations are rising.

“Regulatory changes point to the need for a new mindset in conduct and culture by both individuals and firms, and industry initiatives need to make this happen. In an insurance market in a changing world, it will be down to the people in the sector acting professionally to confront the issues and challenges

“The sector faces a choice. It can take a reactive approach to the issues it faces, or it can respond with vigour and enthusiasm towards finding solutions.”

The CII said the general insurance sector has already taken major strides – both collectively as a sector and individually as firms – to improve standards, as demonstrated by the Aldermanbury Declaration - but must not rest on its laurels.