I have previously discussed complaints handling and intervention from the Financial Ombudsman Service.
In this article, I will take this a step further and discuss what effect a complaint can have on your business after its resolution and how to work with a professional indemnity insurance broker to get the best deal after handling a successful claim.
It is always worth remembering that there is an upside to receiving a complaint — it is the perfect opportunity to review your systems and processes, and again that is where you should start.
Internal reviews
When a complaint has been received, a root cause analysis must be carried out to establish where it came from and if any changes to your working practices are necessary. This should cover the entire process, from the initial customer interaction to the final resolution.
Evaluate your IT, including your customer relationship management system and any other relevant software to see if technical issues or limitations could have contributed to the complaint.
Also assess the quality and accuracy of your documentation, including how complaints are recorded, tracked and monitored, to identify any gaps or deficiencies in the process.
Once the complaint is resolved, your focus should change to implementing any necessary changes and ensuring all affected staff receive the relevant training.
Evaluate the adequacy of your training programmes and the guidance provided to employees involved in handling the complaint to determine if there are areas where improvements can be made or additional resources are needed.
Look for patterns or trends in similar complaints to identify any systemic issues or recurring problems. Are there any common factors contributing to multiple complaints?
Once you are confident you have addressed any issues that arose from your review, it is business as usual from an internal perspective.
Involving your PI insurer
Now, this is where things get a little trickier. You are duty bound to inform your PI insurer of any complaints at the earliest opportunity and keep them up to date throughout the course of the matter.
You cannot brush an issue under the carpet, even if you expect any compensation required to be at a level you can handle without making a claim.
There are benefits to bringing your PI insurer into the loop — they may be able to offer valuable advice, particularly if you have little or no experience in handling the complaints process.
As a minimum, they will want to review your final response letter and might assist with calculating any renumeration required on your behalf, if the complaint is upheld. It is worth mentioning that if the issue relates to a defined benefit matter, you might need to have actuarial calculations produced.
