If reading insurance documents regularly leaves you with a “what the hell does this mean?” feeling, a new tool from Co-operative Insurance could help.
After conducting research with One Poll showing 66 per cent of people say insurance is too confusing, 36 per cent of people don’t understand how their insurance is priced, and 27 per cent of people don’t understand why the price of insurance varies annually, Co-op Insurance has come up with a tool to help its customers to explain how pricing works and to improve transparency all round.
As part of the trial, around 10,000 customers have received information about how their insurance premiums have been calculated and why premium prices can fluctuate annually.
The tool, in the form of a guide, also explains the possible consequences of certain types of claims made, for example how much a fire claim would cost. Responses from customers throughout the trial will be used to shape the tool and initial feedback received from the pilot scheme to date, indicates that the majority of customers have found the tool useful.
The launch is part of the Co-op’s bid to become a more innovative insurer.
Just last week Fairer Finance released research highlighting the ridiculously long sentences that can be found in some insurance documents. They found the longest sentence ran to… 220 words! This was in Axa’s travel insurance documents.
Anything that reduces confusion for people and helps increase transparency in financial services is a GOOD thing. Hooray for Co-operative Insurance for taking this step.