To ensure that all products are performing as they should, deliver, as far as possible, the outcomes promised to customers and benefit from modernising developments, Aviva operate a product governance framework which identifies and fixes issues and ensures that customers are compensated for any loss. A regular review of all products is undertaken which aims to ensure that customers are receiving the best experience throughout the life of their product and at retirement.
Last year, we reported on a number of “risk events” which had the potential to cause customer detriment. When identified, Aviva carry out a root cause analysis and identifies all customers impacted by the risk event. We are pleased to note this year that the number of events has once again reduced, from 26 at the end of 2019 to 22 at the end of 2020, 18 of which already have resolution in progress.
During 2020, Aviva paid out over £4m in remediation to customers and so it is important for them to identify risk events quickly, and to resolve any issues in a timely manner ensuring the amount of remediation does not continue to grow. Last year, we voiced our concern that the number of risk events which had not been resolved after 12 months was relatively high. That number has reduced in 2020 and Aviva have plans in place to reduce the number to zero in 2021. We will keep matters under review and expect to see further reductions in the number of open risk events throughout the year.
Aviva’s workplace pension proposition is constantly evolving. That might be because of changes to regulations but also to take opportunities to enhance the customer experience.
In 2020, a number of improvements and enhancements were delivered. Due to the pandemic, the amount of change was less than Aviva set out to deliver at the start of the year. Whilst this was understandable as resources were diverted to support customers through difficult times, we were pleased that a number of product improvements were delivered, including:
As the financial and people impact of the pandemic is better understood, it will allow Aviva to accelerate their 2021 delivery of new features, and we will report further on this next year.