Tackling Racial Bias in Customer Services

In a 2022 study, Citizens Advice revealed a concerning trend between ethnicity and car insurance price. They found that the average quote in a low crime rate area with a largely Black or South Asian population, was over double the average quote in an area with a largely White population with a much higher crime rate.

It was also identified that those living in areas with large populations of people of colour, paid at least £280 more for their car insurance. This implied that these areas may be identified as high-risk, despite objective risk factors being controlled.

This is an example of discrimination by perception, where a customer is treated unfairly because they are assumed to be a particular race. This is not uncommon for ethnic minorities, who may be disadvantaged due to stereotypical perceptions and racism. 

Race is one of the nine protected characteristics under the Equality Act 2010. It is illegal for firms to discriminate against someone because of their race. For example, refusing to sell insurance products to someone or charging higher premiums because of race.

When carrying out communications with clients, there are some factors you should take into consideration:

English proficiency

Automatically assuming that someone who is an ethnic minority cannot speak or understand English is an example of an unconscious bias. However, if a customer does have limited English proficiency, do not speak to them in a condescending manner. Be patient and help them as best you can, such as explaining the definition of insurance terms in plain language. 

Outdated terms

Sometimes people may unintentionally use outdated terms to refer to people of a particular race, but do not realise the harm it can cause. Terms such as ‘coloured’ and ‘half-caste’ should not be used as they have racist origins.  

Microaggressions

A microaggression is a subtle negative action, remark, or attitude towards marginalised groups. These can be intentional or accidental and can often be mistaken as a compliment. For example, commenting on how an Eastern Asian customer’s English is good, despite English being the customer’s first or only known language.  

Othering

There is no harm in being curious, as it is human nature. But many people may feel that they are being interrogated or scrutinised every time somebody asks, ‘where are you originally from?’. This can lead to what is known as ‘othering’; treating someone as an ‘outsider’ because they do not look or sound like they are part of a particular group. 

It’s ok to make mistakes or say the wrong thing by accident; just apologise, correct yourself and move on. Customers should be treated equally and with the same level of courtesy, regardless of their race.

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