TCF IMPLEMENTATION PROGRESS SURVEY FINDINGS - PRESENTATION.PPTX

1. Date 2013 © 2013 IRA. All rights reserved. Contains IRA‘s Confidential and Proprietary information and
may not bedisclosed or reproduced without the prior written consent of IRA.
TCF IMPLEMENTATION
PROGRESS
Self-Assessment Survey
Findings
© 2019 IRA. All rights reserved. Contains IRA‘s Confidential and Proprietary information and
may not be disclosed or reproduced without the prior written consent of IRA.

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Contents
Introduction
TCF outcomes
2019 Self-assessment Survey
Objectives
Survey methodology
Survey demographics
Survey Findings
Industry gaps
Way Forward

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Introduction
TCF is an outcome based best approach to treating customers
fairly.
TCF Journey
Benchmarking visit to South Africa in 2014
Customization of the TCF framework
Stakeholder sensitization
Circular to the industry
Rollout of the TCF implementation plan in Jan. 2017
Baseline survey in May 2017
2018 & 2019 follow-up surveys

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TCF Outcomes
1. Culture
2. Products and services
3. Clear and appropriate information
4. Customer advice
5. Performance & Expectation
6. Claims and complaints Handling

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Why the Survey
Monitor implementation progress to:
 Identify implementation status
 Identify gaps
To enhance TCF implementation and customer
outcomes

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Survey Methodology
Descriptive research design
Data collection : 29th May and 27th June, 2019
Self completion
Target: All insurance companies
Geographical coverage: Nairobi

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Survey
FINDINGS

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Demographics
Male
50%
Female
50%
Gender
36%
24%
17%
7%
12%
2% 2%
Position in the company
Manager
Consumer
Experience
Risk and
Compliance
Actuarial
Legal
Principal
Officer

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Demographics
34%
63%
3%
Highest level of education
Masters
Bachelors
PHD
Type of
Company
No of licensed
companies
Responses
Received
Response
rate
General 29 25 86%
Life 16 14 88%
Composite 15 5 33%
Total 60 44 73%

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Demographics
29.41%
44.12%
20.59%
2.94%
2.94%
Age of respondets
21-30 YEARS
31-40 YEARS
41-50 YEARS
51-60 YEARS
61-70 YEARS
57%
32%
11%
Proportion of respondents
General
Life
Composite

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Demographics
22%
49%
11%
14%
5%
Professional qualification
Consumer Experience
Certification
Insurance Certification,
ACII, AIII, AIIK,
CPA
Law
Auditor Qualification

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Implementation of TCF outcomes
84%
91%
93%
91% 90% 90% 90%
78%
83% 83% 83%
81% 81% 82%
68%
83%
80% 81%
78% 77% 78%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Culture Products and
services
Clear and
Apprpriate
Information
Advice to
Customers
Performance
and
Expectation
Claims and
Complaints
Handling
Industry
Average
2019 2018 2017

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Culture
Availability of systems to achieve culture outcome
82%
89%
18%
11%
0%
20%
40%
60%
80%
100%
120%
2018 2019
No Yes

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87%
93%
83% 82%
85%
76%
80%
84%
80%
86%
80% 78% 77%
74%
70%
78%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2019 2018
Level of implementation on culture outcome

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Gaps in implementation of culture outcome
13%
24%
20%
18%
17%
16%
15%
7.0%
0% 5% 10% 15% 20% 25% 30%
Leadership
Reward
Management
Information
Performance
management
Decision Making
Industry Average
Control and
Governance
Strategy

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Products and Services
Availability of systems to achieve products and services
outcome
97% 95%
3% 5%
0%
20%
40%
60%
80%
100%
120%
2019 2018
No Yes

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Level of implementation of products and services
outcome
100%
98%
98%
98%
95%
91%
98%
83%
81%
74%
85%
88%
82%
86%
85%
82%
82%
84%
82%
82%
76%
81%
0% 20% 40% 60% 80% 100% 120%
Identification of target groups
Information given to staff
Suitable distribution methods
Approval process includes promotional…
Measures to evaluate understanding of…
Measures to mitigate risks
Approval includes management…
Sales are tracked to meet target group
Risk mitigation process
Product withdrawal process
Evaluation of tcf in product renewal
2018 2019

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Gaps in implementation on products and services
outcome
0
2%
2%
2%
5%
10%
2%
17%
19%
26%
15%
9%
0 0.05 0.1 0.15 0.2 0.25 0.3
Identification of target groups
Information given to staff
Suitable distribution methods
Approval process includes…
Measures to evaluate understanding…
Measures to mitigate risks
Approval includes management…
Sales are tracked to meet target group
Risk mitigation process
Product withdrawal process
Evaluation of tcf in product renewal
Industry average

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Clear and Appropriate information
Availability of systems to achieve clear and appropriate
information outcome
93%
83%
7%
17%
0%
20%
40%
60%
80%
100%
120%
2019 2018
No Yes

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Implementation levels of clear and appropriate
information outcome
95%
91%
95%
91%
100%
95%
83%
91%
93%
100%
95%
93%
81%
83%
85%
82%
85%
84%
78%
79%
83%
86%
85%
83%
0% 20% 40% 60% 80% 100% 120%
Clarity of information provided to customers
Testing for clarity before issuing
Summary of product sold provided to customers
Process to rectify inaccurate information
Feedback from customers is acted upon
Process to ensure relevant information is provided to
customers
Customers are provided with FAQ
Customers provided with contracting
Up to date contact details on customers
Customers have accessible contact points
Accurate secure record of info to customers
Industry average
2018 2019

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Gaps in implementation of clear and appropriate
information outcome
5%
10%
5%
10%
0%
5%
17%
10%
7%
0%
5%
7%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Clarity of information provided to customers
Testing for clarity before issuing
Summary of product sold provided to
customers
Process to rectify inaccurate information
Feedback from customers is acted upon
Process to ensure relevant information is
provided to customers
Customers are provided with FAQ
Customers provided with contracting
Up to date contact details on customers
Customers have accessible contact points
Accurate secure record of info to customers
Industry average

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Customer Advice
Availability of systems to achieve customer advice outcome
91%
83%
9%
17%
0%
20%
40%
60%
80%
100%
120%
2019 2018
No Yes

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Implementation level of customer advice outcome
98%
100%
95%
95%
93%
95%
88%
95%
78%
77%
91%
85%
88%
86%
87%
79%
85%
83%
93%
75%
73%
83%
0% 20% 40% 60% 80% 100% 120%
Processes to provide advice before marketing
Appropriate skills by company to offer advice
Due dilligence before marketing
Adequate training to representatives
Controls to ensure advice is not offered incase of
inaedquate training
Feedback on training needs is monitored
Process to mitigate risks incase of misleading info
Potential TCF indicators monitored
Clear TCF measures included in targets for reward
Compensation for inappropriate advice offered
Industry Average
2018 2019

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Gaps in implementation on customer advice
outcome
2%
0%
5%
5%
7%
5%
12%
5%
22%
23%
9%
0% 5% 10% 15% 20% 25%
Processes to provide advice before
marketing
Appropriate skills by company to offer
advice
Due dilligence before marketing
Adequate training to representatives
Controls to ensure advice is not offered
incase of inaedquate training
Feedback on training needs is monitored
Process to mitigate risks incase of
misleading info
Potential TCF indicators monitored
Clear TCF measures included in targets
for reward
Compensation for inappropriate advice
offered
Industry Average

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Product performance and expectation
Availability of systems to achieve product performance and
expectation outcome
96% 91%
4% 9%
0%
20%
40%
60%
80%
100%
120%
2019 2018
No Yes

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Implementation level on product performance and
expectation outcome
86%
93%
88%
96%
91%
85%
93%
86%
86%
98%
90%
81%
83%
82%
82%
78%
77%
82%
82%
75%
87%
81%
0% 20% 40% 60% 80% 100% 120%
Processes to mitigate risks identified in monitoring of
developments that could impact customer…
Analysis of early termination to identify risks that
products are not meeting expectations
Processes to alert customers on risks of their actions
Processes in place to alert custoemrs on non-action
Clear service standards present and communicated
to customer
Service standrds to determine products are in line
with expectations are tested
Feedback on areas of improvement from customers
acted upon
Processes in place to mitigate risks where products
will not perform as expected
Management Information on customer expectation
and processes to meet them are in place
Processes in place to protect confidentiality of
customer information
Industry Average
2018 2019

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Gaps in implementation of product performance and
expectation outcome
14%
7%
12%
4%
10%
15%
7%
14%
14%
2%
10%
0% 2% 4% 6% 8% 10% 12% 14% 16%
Processes to mitigate risks identified in monitoring
of developments that could impact customer…
Analysis of early termination to identify risks that
products are not meeting expectations
Processes to alert customers on risks of their
actions
Processes in place to alert custoemrs on non-
action
Clear service standards present and
communicated to customer
Service standrds to determine products are in line
with expectations are tested
Feedback on areas of improvement from
customers acted upon
Processes in place to mitigate risks where
products will not perform as expected
Management Information on customer expectation
and processes to meet them are in place
Processes in place to protect confidentiality of
customer information
Industry Average

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Complaints handling
Availability of systems to achieve complaints handling
sub-outcome
89% 89%
11% 11%
0%
20%
40%
60%
80%
100%
120%
2019 2018
No Yes

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Implementation level on complaints handling
sub-outcome
93%
81%
68%
98%
98%
100%
86%
100%
88%
81%
91%
89%
96%
79%
71%
96%
89%
89%
100%
100%
93%
71%
96%
89%
0% 20% 40% 60% 80% 100% 120%
Service standards in place for processing
complaints
Customers informed on complaints service
standards
Complaints Process tested to ensure its available
to customers
Compaints management and root cause process
in place
Customers informed how to complain and
further options if dissatisfied
Customers informed of progress once a
complaint has been resolved
Contact details of complain handler provided
Clear reasons given for complaint response with
evidence
Structured complaints for objective decisions
Follow up processes for customer satisfaction
Complaints analyzed to identify risk of misselling
by representatives
Industry Average
2018 2019

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Gaps in implementation of complaints handling
sub-outcome
7%
19%
32%
2%
2%
0%
14%
0%
12%
19%
10%
11%
0% 5% 10% 15% 20% 25% 30% 35%
Service standards in place for processing complaints
Customers informed on complaints service standards
Complaints Process tested to ensure its available to customers
Compaints management and root cause process in place
Customers informed how to complain and further options if
dissatisfied
Customers informed of progress once a complaint has been
resolved
Contact details of complain handler provided
Clear reasons given for complaint response with evidence
Structured complaints for objective decisions
Follow up processes for customer satisfaction
Complaints analyzed to identify risk of misselling by
representatives
Industry Average

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Claims handling
Availability of systems to achieve claims handling
sub-outcome
90%
82%
10%
18%
0%
20%
40%
60%
80%
100%
120%
2019 2018
No Yes

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Implementation level on claims handling sub-outcome
95%
93%
66%
81%
91%
100%
100%
98%
100%
98%
86%
79%
90%
87%
85%
78%
79%
82%
87%
84%
84%
86%
82%
84%
74%
82%
0% 20% 40% 60% 80% 100% 120%
Service standards in place for claims handling
Customers informed on claims service standards
Customers provided with FAQ on claims process
Documented claims setlled within service charter
Claims processes tested to ensure suitability for
customer
Advice on information required to process a claim is
given
Contact details of person dealing with claims provided
TCF outcomes considered before repudiating a claim
Clear reasons for repudiating a claim given
Advice given on steps of review incase of dissatisfaction
Analysis is done on claims experience to identify mis-
selling risks
Follow up to determine customer satisfaction levels after
claims are finalized
Industry Average
2018 2019

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5%
7%
34%
19%
10%
0%
0%
2%
0%
2%
14%
21%
10%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Service standards in place for claims handling
Customers informed on claims service standards
Customers provided with FAQ on claims process
Documented claims setlled within service charter
Claims processes tested to ensure suitability for
customer
Advice on information required to process a claim
is given
Contact details of person dealing with claims
provided
TCF outcomes considered before repudiating a
claim
Clear reasons for repudiating a claim given
Advice given on steps of review incase of
dissatisfaction
Analysis is done on claims experience to identify
mis-selling risks
Follow up to determine customer satisfaction levels
after claims are finalized
Industry Average
Gaps in implementation of claims handling
sub-outcome

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Industry Gaps on TCF implementation
16%
9%
7%
9%
10% 10% 10%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Culture Products and
services
Clear and
Apprpriate
Information
Advice to
Customers
Performance and
Expectation
Claims and
Complaints
Handling
Industry Average

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Way Forward
Be deliberate on implementation of TCF.
 Implementation plan
 Implement audit systems to frequently monitor
implementation

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“Change is the law of life and those who look only to the
past or present are certain to miss the future.”– John F.
Kennedy

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Teresa Oino
Policy Research and Development
Insurance Regulatory Authority (IRA)
P.O BOX 43505 - 00100 NAIROBI
Zep-Re Place Off Mara Road - Upper Hill, Nairobi
Tel: (+254) 20 4996000, 0727 563110
Mobile: (+245) 0 719047809
Fax: (254)- 020- 2710126
Email: tnyatuka@ira.go.ke
www.ira.go.ke