Insurance professionals should be given mandatory training on economic abuse, according to Johnny Timpson.
Timpson (pictured) spoke to Health & Protection following the Chartered Insurance Institute (CII) revealing this morning that it has agreed to develop guidance for insurance professionals working with victims of economic abuse. That is ahead of International Economic Abuse Awareness Day this Sunday (26 November).
Its move follows a report from the Surviving Economic Abuse (SEA) published earlier this month outlining the impact of life insurance policies on victim-survivors of economic abuse.
It highlighted research by Aviva that showed two in five British adults have experienced a form of economic or financial abuse at some point during their lives.
Life insurance and economic abuse: The challenges faced by victim-survivors of economic abuse in accessing and ending life insurance protection was written by Professor James Davey, of the University of Bristol, and Financial Conduct Authority (FCA) consumer panel member, Timpson.
The CII commended the report and has agreed to develop guidance based on its recommendations.
The report recommends that member organisations should develop an ‘industry-led code of best practice regarding how firms can support victims-survivors’.
The CII will work with members to produce good practice guidance for professionals, using the case studies and recommendations for practitioners in the report as a starting point.
Speaking to Health & Protection this morning about what this guidance could look like, Timpson called for mandatory training for everyone that works in the insurance market place to make sure they are aware of what financial abuse is, what coercive control is and how to empathise with and support the person that is experiencing that type of abuse.
But Timpson added another area to look into is where network principals are appointed representatives to check the way that they are setting up cases.
“We’ve got far too many cases where there is a victim of economic abuse where a joint life insurance policy has been arranged and the victim was unaware the cover was in place,” Timpson continued.
“The victim had not given the insurer their personal information. Someone else has given them that information on their behalf and that should not happen.
“Policies should not be set up with information given on someone’s behalf without their express permission. So there needs to be some regular checking around the quality of the business.
“What we’re suggesting is mystery shopping may be appropriate just to quality check on people. The mystery checking needs to check business quality. That is something I understand the Protection Distributors Group are looking for.”
Timpson also reiterated his call for a mechanism enabling insurers to split a life insurance policy where there is evidence of economic abuse, adding the Association of British Insurers (ABI), the CII and the Protection Distributors Group (PDG) should work with the FCA to shape what the guidance looks like.
Though Timpson warned this issue is not just a concern for life insurance.
“This is an issue for pensions, investments and all forms of general insurance as well. So we need to develop guidance across all types of financial services,” Timpson concluded.
