In the first ever initiative of its kind, financial services companies announced today a major programme of work to address changing customer needs and expectations for long-term savings and protection into the next century. The Savings and Long-Term Risk (SALTR) project addresses standards in the industry and its future direction, and it could lead to a major investment in improving customer education, awareness and information.

The programme comprises a package of four separate but related initiatives:

(i) An investigation into how to build on the improvements made to standards of customer service, information and products over the last few years and to recognise existing centres of excellence. It will cover those aspects of business not covered by the regulatory regime.

Specifically the project will research, consider and address areas where concerns remain, as well as looking at changing customer needs. The aim will be to identify ways in which providers can further improve value, provide better and clearer information and improve service and delivery standards.

(ii) Establishing a "Forum for Action" to help set a strategic agenda for the future of the industry. Independently chaired, the Forum would bring together representatives from employers and employees, consumer groups, regulators, the government and the financial services industry. It would be used to consider long-term financial needs which are changing, development of the industry, and the creation and operation of new forms of long-term saving.

(iii) Proposals are being developed for a major public awareness campaign to help consumers to understand the need to provide for their future, to help change attitudes towards saving and protection, and to encourage consumers to take action. It would be directed at the mid to lower income groups and would aim to support much of the current agenda to reform the welfare state.

(iv) Establishing a consumer information service to provide free information via a telephone helpline and related publications. The objective would be to help consumers to evaluate their own financial situation and to work out their future needs or know who to go to and where to go to obtain such advice. It would not be linked to any product providers or provide specific product advice. Talks will be held with the FSA to establish the best way of dovetailing this initiative with their proposals.

The aim would be to make consumers better informed and more aware of their own financial position and how they stand in meeting their long-term financial expectations. They will be more confident in contacting advisers/providers of financial services as a result of this improved knowledge and awareness and knowing what questions to ask.

Commenting on the announcement, Sandy Leitch, Chairman of the SALTR project said:

- "This is an exciting and very positive development from the industry. It demonstrates the very real desire of financial services companies to increase consumer awareness and to educate and empower their customers. It makes sense for consumers and the industry. There is massive financial under-provision but people are unsure what financial provision they need, what they have in place and what action to take to realise their expectations for the future.

"The financial services industry has been changing rapidly in the last few years during which a positive customer focus has emerged. This has resulted in service and products that provide excellent value for money. However, this initiative recognises that there is still some way to go in improving advice, information, service and products. We are determined to achieve this through collective action giving extra weight to the initiatives being undertaken by individual companies."

The SALTR project has been developed by a consortium of leading financial service providers comprising life and pension companies and banks. Discussions are now taking place with a wider group of financial services providers to secure their support and to bring them into the project.

Notes

1. Sandy Leitch is the Chairman of the Association of British Insurers and Chief Executive of Zurich Financial Services in the UK.



2. Work on the project started in early-1998 when chief executives of a group of leading financial service providers discussed and agreed the need and value of collective action. In the initial stages many ideas were considered and these were refined down to the four initiatives outlined. The group have now set-up work groups to take the initiatives to final assessment and specification stage.



3. Enquiries to:
   
   Tony Baker - 020 7216 7400
   
   Richard Hobbs - 020 7216 7680
   
   John Bounds - 020 7216 7421