The Association of British Insurers (ABI) and the British Insurance Brokers’ Association are to develop an industry code on handling vulnerable customers at renewal time.

The ABI will also publish industry data on how many motor, property and travel claims are accepted each year, to counter the popular perception insurers do not pay out.

ABI Chairman and Axa UK CEO Paul Evans announced the initiatives at the association’s biennial conference in London last week.

He told delegates they will foster greater trust between insurers and customers.

The joint code on vulnerable customers will be voluntary and will apply to motor and household cover.

Each business’ definition of vulnerability may vary and the code will refer to a range of risk factors including low literacy or numeracy skills, mental health, old age or recent bereavement.

The code, expected to be published this year, will encompass staff training, improved business processes and tailored communication to help insurers and brokers deal “appropriately and flexibly” with customers.

The claims data – an industry first – will be published from the end of the year, to show the value of insurance products. The ABI believes high acceptance rates will provide greater certainty that policies deliver.

Mr Evans says the initiatives represent “a real watershed moment” for the industry.