WEALTH WATCH
STEPHEN CRANSTON: Insurance watchdog report puts great emphasis on telling truth
Deanne Wood says social media and better technology affect the way the industry operates
I have a high regard for the system of voluntary ombudsmen. Customers who are unhappy with the treatment they get from sectors such as insurance, life assurance and banking can complain to them. They provide a free service and, best of all, the members of the scheme agree to abide by the ombudsman’s ruling. There is an appeal process, though it is rarely used and there is certainly no need to get the courts involved. This is in contrast to the compulsory ombuds. No company agreed to any terms and conditions from, say, the pension fund adjudicator. A few years ago, the life offices regularly took the adjudicator to court on the issue of poor termination values on retirement products. That is not to say the ombudsmen are simply consumer advocates. Only lawyers can apply for the jobs because the legal issues are very detailed. And the law is applied with no particular compassion for the customer. But the ombudsmen do not stick rigidly to the law. There has been a change of approach fro...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.