The Chartered Insurance Institute has published a guide that provides practical guidance on how firms can effectively identify, support and deliver fair outcomes for customers in vulnerable circumstances. The CII said the guide would assist market practitioners to translate regulatory principles into operational practice.

The CII said that up to half of UK adults display characteristics of vulnerability at any one time and that most were likely to do so at some stage in their lives. It said the Financial Conduct Authority’s Consumer Duty meant firms had to provide good outcomes for all customers, including those deemed to be vulnerable.

The guide is entitled, Managing Customer Vulnerability in Insurance and Personal Finance: A Practical Implementation Guide.

It sets out how to create a vulnerability management framework through the following six stages: identify, quantify, monitor, support, adapt and report. It also offers information on needs around data infrastructure and outcomes reporting as well as how to address required improvements.

Matthew Hill (pictured), chief executive of the CII, said: “Effective vulnerability management is about more than regulatory compliance. It is about creating a fairer, more resilient system for all customers.

“In embedding the principles of this guide into their culture and operations, firms will not only meet the expectations of good practice, but also contribute to the development of a sector that conscientiously strives to meet the needs of every customer.”