Swinton News Update: Swinton Insurance Slapped with Fine
Swinton news update: Insurance company Swinton have been dealt a £7.4 million fine by the Financial Conduct Authority for their aggressive sales pitches.
Swinton insurance brokers have been hit by a £7.4million fine because their sales strategies no longer abide by the rules set by the regulators. The new guidelines forced the Financial Conduct Authority (FCA) to issue the largest fine ever to be sent in the direction of an insurance company since the Financial Service Authority – the regulator in charge before the FCA – took over.
The very ability to add features to an existing insurance policy has come under the scrutiny of the FCA on the basis of fairness but for Swinton in particular their tactics came under scrutiny before they even became the regulators. The reasoning behind the fine is that they were seen to use aggressive sales tactics that put the customers in unfair positions with regards to the additional insurance policies that they offer.
The period in question is April 2010-12 and it was acknowledged by the company that their auditors had flagged the issue and the chief executive – Christophe Bardet – ordered retraining for the company’s staff in order for them to fall into line with the FCA’s expectations.
Swinton News Update
Responses to the FCA’s decision to fine Swinton have come in thick and fast with the general feeling that the whole of the financial services industry is being expected to change their practices and set a level of behaviour that exceeds what is currently in place. This expectation is forcing companies like Swinton to change the way they sell their products.
Bardet has been fast to acknowledge his company’s mistakes but that did little to quieten the barrage of anecdotes that detail the poor attitude of Swinton. Evidently the company offered poor working environments, with high stress levels that were induced by long hours and a pressure to reach targets forced the employees to sell more add-ons.
The big question falls into the realm of the amount of the fine – is £7.4 million fair to Swinton? When you compare it to the amount of revenue they have reportedly made from the sale of insurance add-ons, which totals £92.9 million, it seems rather on the meek side.
If you are interested in the services Swinton offer, contact their customer services department and speak with a member of their team. You can be sure that following this fine you will be able to speak with a member of the team without having to feel pressured into purchasing an additional insurance service.
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