Profile of claims management consumers revealed

Profile of claims management consumers revealed

15 November, 2017

Consumers using claims management companies (CMCs) are more likely to have lower incomes, watch Strictly Come Dancing and use Facebook, latest research shows.

The revealing insights into who tends to use CMCs – for services like PPI mis-selling or accident claims –   have been published by the Legal Ombudsman to help the industry provide a better service to its customers and reduce complaints.

Profiling everything from customers’ media consumption habits to internet activity, income and hobbies, the YouGov study was based on more than 2,800 people in Great Britain who had used a CMC in the past two years.

It follows similar research commissioned by the Legal Ombudsman to determine the profile of legal service users and will also be used to inform the organisation’s communication and engagement activity to improve accessibility to the ombudsman scheme.

Findings reveal that CMC users are predominantly white, over the age of 45, have an income of less than £25,000 and spend their spare time doing free activities like reading a book or spending time in a park or garden.

While they were not particularly avid TV watchers, documentaries and news were the most popular genres they watched – with the news followed closely by Strictly Come Dancing, I’m A Celebrity… Get Me Out of Here! and Coronation Street.

Three quarters had used Facebook in the last 30 days and were significantly more likely than the national population as a whole to have used a price comparison site like Money Supermarket.

Penny Medlyn, Operations Manager for CMC jurisdiction at the Legal Ombudsman, said: “This kind of data gives really useful insights for the industry and the types of people who use CMCs.

“We hope this will help claims management firms understand their customer base better and how important their claims are to them, particularly if they have lower incomes. If they understand how their clients are thinking, it can help to reduce the number of service complaints.”

Independent and impartial, The Legal Ombudsman investigates complaints into poor service from regulated legal or claims management service providers along with feeding back to the profession. The organisation investigated and resolved 2,616 complaints about CMCs in the 2016-17 year, the majority of which related to financial products and services such as mis-sold payment protection insurance.

Read the full report on Claims Management Company (CMC) Users here.

Download this press release here.