A customer complaint is an excellent barometer and provides incredible insights for introspection. Many organizations already have some mechanisms to analyze internal complaints data and use that as a feedback loop for continuous improvements. Although only a small percentage of internal complaints lands on an external dispute resolution scheme like AFCA, this is an excellent opportunity to learn and introspect.
Financial firms can compare & benchmark their complaints & process gaps against the industry peers or product lines to identify systemic risks, periodic progress made, and opportunities for improvement.
Benchmarking against the industry for a specific product line
The industry is going through a constant change because of changing market conditions and risks from various forces, including pandemics and Queensland floods. These external factors influence customer disputes directly and reflect new patterns. For example, consumer complaints about travel insurance policies have nearly tripled since this time last year, as more than half have resulted from COVID-19 disrupting holidays.
Benchmarking against the industry for a specific product line provides an opportunity for firms to learn about the industry as whole relating to top concerns for customers, compliance failure patterns, systemic issues, AFCA decision outcomes, and trends.
Comparing against industry peers
Comparing and benchmarking against the industry peers allows firms to learn and correlate top reasons for disputes, type of compliance failed, and AFCA’s decision outcomes. The insights provide an excellent opportunity to find areas to differentiate.
ASIC’s RG 274 product design and distribution, target market distribution principles require product feedback and complaints about internal and external disputes. Expanding the scope of learning to external data points helps identify emerging patterns from the industry peers, introspect and improve them.
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