The UKRN held an event in London, at which it explored best practices to drive fair outcomes for vulnerable consumers.
Background: The Network of UK Regulators (UKRN) brings together regulators from the UK’s utility, financial, and transport sectors. As part of its recent activity, the UKRN has been working on ways to improve protection of vulnerable customers. During 2020, it aims to work openly with its members and stakeholders to identify and develop cross-sectoral insights to better target and prioritise the efforts of firms and regulators in improving the experience of vulnerable consumers. These were discussed at an event in London on 10 February 2020.
Industry should make better use of data: The event started with examples of good practice companies are already adopting to improve vulnerable customers’ experience. These include proactivity in being on the consumers’ side, and finding workable solutions for customers who may, for example, struggle with their regular payments. Chris Fitch, Vulnerability Lead at the Money Advice Trust noted that firms are already undertaking ‘fairness outcome tests’ to make sure outcomes experienced by vulnerable consumers are as good as those of other consumers. However, there is room for improvement in shifting the focus from what makes someone vulnerable, to the key question that should be “what are they vulnerable to?”. Firms should develop ‘vulnerability data strategies’ to identify the best outcomes.
Ofcom’s definition of vulnerability has changed: Jane Rumble, Director of Consumer Policy at Ofcom, noted that the regulators’ definition of vulnerability is now more nuanced than before and takes into account temporary disabilities, mental health, as well as income. Rumble admitted that, in Ofcom’s recent broadband pricing review, there was a gap in their analysis of potentially vulnerable consumers. In 2020, Ofcom will work to map data from third parties and match it with pricing data from its own research team.
Use of behavioural insight will improve outcomes: Some speakers highlighted the importance of behavioural insights to better understand vulnerabilities and set out adequate remedies. Stefan Hunt, Chief Data and Technology Insight Officer at the Competition & Markets Authority (CMA), showed how the authority is starting to build this into its investigations and enforcement. A new Behavioural Insights director is about to join the authority, and some psychologists were hired in December 2019.
