How the issues affect our business
The life assurance industry is important from both an economic and social perspective, contributing to the generation of wealth and the social wellbeing of society. It allows consumers to transfer risk, buy protection and save for retirement. The industry pays out £166 million every day in pension and life assurance claims.
Friends Provident's business was founded with the aim of alleviating the hardship of families facing misfortune. Today, as we pay out millions of pounds every working day, improving the quality of life of our customers and their families remains our aim and our core social responsibility.
We aspire to be one of the most successful and progressive UK financial services groups. Our success depends on the trust and confidence placed in us by our customers, shareholders, business partners, staff, the communities around us and society at large. We recognise that the long-term interests of our stakeholders are best served by acting in a socially responsible manner and by continuous improvement in all that we do.
Friends Provident’s strategy is to focus on core segments of the UK life and pensions market based on our existing strengths and the international market. More specifically this includes;
- Maintaining our share of the UK protection market and entering selected new segments,
- Enhancing profitability in the UK group pensions market,
- Adopting a tactical approach to investments and individual pensions in the UK, and
- Pursuing growth in the international savings and investments, pensions and protection markets through Friends Provident International.
The issues:
Trust and confidence
Happy, satisfied customers mean a healthy and profitable Company. We can succeed only if our customers trust us. For many years and many reasons the life and pensions industry has suffered from a lack of consumer trust and confidence. Trust has to be earned and we are committed to playing our part. This includes being self-critical about how our products are communicated, sold and paid for, as well as giving active support for industry trust-building and confidence-restoring initiatives, such as the Financial Services Authority’s Treating Customers Fairly and the Association of British Insurers’ Customer Impact Scheme.
Responsible Investment
Friends Provident’s most significant impact on society is by using our influence as a major shareholder to encourage responsible business behaviour in the companies in which we invest. We are a leader in the field of responsible investment.
Financial Capability
Finance can be complex and many people struggle to understand it. As a financial services company we clearly have a responsibility to ensure people have access to, and understand, our products and services. The term financial capability covers a wide spectrum of issues including financial education, financial advice and financial exclusion. We share the view that financial capability – knowing about and feeling confident with money – needs to be as much a part of people’s lives today as healthy eating and keeping fit.
Climate Change
Climate change is arguably the biggest issue facing the world today. Governments, businesses and individuals are realising the potential impact of climate change, not only on the environment but also on society and the economy. We all contribute to the problem and we all have a duty to mitigate it. We operate a successful carbon management programme to reduce the emissions directly associated with our operations and we are a founding member of ClimateWise, the insurance industry’s response to this pressing issue.
Community
Healthy and prosperous communities provide better trading environments. Friends Provident has a long history of supporting the communities directly touched by our business and believes that building and maintaining relationships of trust in the community is vital to the sustainable future of our business.
People
Friends Provident knows that the quality of our people make our business what it is today. We want employees to have rewarding careers by working in a place where they are valued and respected. We aim to provide a working environment free from discrimination, where everyone feels valued and respected and where each person is able to pursue a rewarding career and contribute to the success of the business. The resilience shown by our employees during the recent period of uncertainty highlights the importance of shared values and a strong culture.
Business diagram
We have identified the factors we face as a responsible business through six key issues.
Download the Business diagram PDF
