The report is based on a consumer survey, conducted in collaboration with YouGov, of more than 2,000 UK adults. It considers consumer perceptions and lived experiences when dealing with financial services providers, while experiencing, or having previously experienced, a mental health condition. While the overall survey looks at the finance sector as a whole, some of the questions focus in on insurance, given the high level of actuarial practise in this sector.
The anxiety of access: bridging the gap between mental health and financial services identifies three widespread issues:
1. People do not feel safe being transparent: 79% of customers believe that sharing mental health information with insurers will lead to higher costs and 65% fear declined cover. This creates a lack of trust and leads to non-disclosure of mental health conditions.
2. Support falls short at the most important moments: While the majority of respondents felt supported when claiming, they identified multiple opportunities to improve the claims experience, suggesting that current processes do not yet fully meet the needs of vulnerable customers.
3. Everyday interactions are harder than they should be: 66% find routine interactions stressful, with a strong preference for digital, flexible channels over phone-based communication.
Looking specifically at insurers, the industry has an opportunity to redefine the trust contract with consumers by: building transparency into underwriting to reduce fear and encourage disclosure of conditions; prioritising dignity and reasonable adjustments over speed of response in claims; closing the accessibility gap through multi-channel, flexible communication, and protocols that mean customers do not need to keep repeating details of mental health conditions.
Emma Hickey of the IFoA Mental Health Working Party, said: “When we began exploring mental health in the context of disability insurance, we wanted to understand how people experience interacting with financial services while managing a mental health condition.
This report highlights that non-disclosure is largely a rational, defensive behaviour. As an industry, we need to give customers confidence that disclosure will not automatically result in higher premiums or declined cover.
The same principles apply in claims. Taking the time to communicate in the ways people need, can transform often stressful interactions into supportive experiences.
If we design systems around trust, empathy and accessibility, we will better serve vulnerable customers and strengthen the perception of the industry as a whole."
Paul Sweeting FIA C.Act, IFoA President, said: “Being able to access financial services is a vital part of our day to day lives, but when people feel excluded by the way the system is set-up, this leads to imbalances across society. I encourage actuaries and those working in the financial services industry to act on the measures outlined in this report, to protect, empower and reassure customers.”
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