Insurance industry most difficult to understand - research

clock • 2 min read

Customers find insurance terminology and information the most difficult to understand compared to many other sectors including banking, according to new research.

Technical language and intricate product information also put people off buying policies, the Plain English Campaign acknowledged.

It has prompted Unum and the Plain English Campaign to call for insurers to reduce jargon and small print and simplify the language and presentation of product information.

The YouGov survey on behalf of Unum ranked insurance (46%) around twice as difficult to understand as that for banking (29%), retail (25%) and cars (23%).

The food market was the clear winner with a difficulty score of just 8%.

According to the study of more than 2,000 people, jargon-free language (64%) and the use of images (28%) help most in making product information easily understandable for consumers.

As part of its attempts to clarify language Unum has produced a glossary of terms f income protection which it hopes the industry, government and employers will continue to support.

Marie Clair, spokesperson for the Plain English Campaign, explained that technical detail often confused people and complicated decisions.

"Complex information and the perils of small print have made it difficult for people to really understand information about the products they are purchasing," she said.

"Looking at this research, it is clear that the insurance industry needs to ditch the small print, jargon and gobbledygook in their information. Product information should make complex products more accessible to consumers, not more confusing.

"We're backing Unum's plea to the insurance industry to update product information so that it is crystal clear because better understanding brings greater confidence in the choices we make," she added.

Jack McGarry, CEO of Unum UK, continued: "It's not surprising that many people find insurance confusing - there are thousands of products on the market to choose from.

"The results show that, as an industry, we need to make our products more comprehensible to the consumer. I want people to easily understand, that if you can't work because of illness or injury, you need to have a back-up plan in place to support yourself financially.

"By providing consumers with more easily-understood information, we will raise awareness of the risks employees face and explain what income protection is," he added.

More on Insurer

LV= posts profitable protection business

LV= posts profitable protection business

50% increase in protection profits

Cameron Roberts
clock 25 March 2024 • 1 min read
DeadHappy closes doors to new life insurance customers

DeadHappy closes doors to new life insurance customers

Existing policies are protected

Jaskeet Briah
clock 18 March 2024 • 2 min read
EDI has a positive impact on business: CII

EDI has a positive impact on business: CII

Improving representation has the most impact

Cameron Roberts
clock 13 March 2024 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read