In the UK, one policyholder experienced a rude awakening. When stopped by police, they were told that their car insurance through Churchill was no longer valid because it had expired. The dramatic incident pointed to deeper questions about communications and customer service procedures at the major insurance company.
The policyholder had been insuring their BMW X5 through Churchill since June 2021. The policy was auto-renewed every year and payment made by monthly direct debit. In May of this year, Churchill mailed an “enhanced declaration letter” to the policyholder. The letter explained to them that the company would no longer insure their specific kind of vehicle. However, just a month later, the company assured them there wouldn’t be a renewal of the policy.
Almost immediately, Churchill’s staff understood that the policy was gone. They had no explanation for why this sudden shift in the tide came about. “We had insured my car with Churchill until I was told by the police I hadn’t,” the policyholder expressed frustration over the communication lapse.
The policyholder was sent an out-of-court settlement letter from Surrey and Sussex police. Not having valid insurance would subject them to potential prosecution. In hindsight, luck was on Churchill’s side as they had offered retrospective insurance cover avoiding any criminal liability. In addition, the firm paid the policyholder £150 in compensation for the inconvenience caused by the predicament.
O2, a telecommunications company, solved an increasingly expensive problem with fraud. The company’s statement noted that one customer was a victim of a “Wangiri” scam. This scam usually starts with a simple missed call from a foreign number, luring unsuspecting victims by getting them to call back, incurring potentially expensive fees.
O2 has already pledged its technological resources—including artificial intelligence—to fight the battle against fraudulent calls. They are asking their customers to do their part to protect other customers by reporting any suspicious calls you receive by forwarding them to 7726.
“We’re investing heavily in technology, including AI, to help prevent fraudulent calls from reaching customers, and to flag calls to them when we believe it may be a scam or spam. Customers can help us protect others by taking a few seconds to forward calls like this for free to 7726,” – O2
O2 claims is encouraging customers to place a bill cap of £0 (or another small amount). This new defense will save you from incurring surprise fees amid a rise in robocalls and scams. On top of this, O2 gave £150 in refunds to two customers who incurred fees after receiving potentially fraudulent calls.
The issues faced by both Churchill and O2 serve as reminders that customers still face a long way to go in customer service communications and the need for transparency. As companies navigate these issues, they must ensure that policyholders and customers alike are adequately informed about their rights and available support options.