Insurance information ‘overwhelming’ say consumers
Data analytics company Consumer Intelligence showed that while only 13% of respondents would consider themselves ‘vulnerable’ customers (defined by the UK regulator as ‘someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care’), the majority still find the information confusing.
The research also showed that many don’t understand the meaning of a vulnerable customer – prior to completing the survey, only 52% knew of the term, but once it had been explained, 48% said they knew someone who would fit the bill.
Surprisingly, it is younger age groups rather than the elderly who feel most overwhelmed. Among the 18-34 age group, 80% of respondents said they ‘sometimes or often’ have trouble understanding information from their insurer. The over-55s claim to have the greatest level of understanding, with 32% saying they have no problem with the information they receive.
Ian Hughes, CEO of Consumer Intelligence, said: “Financial services companies have a real challenge ahead. Recognising vulnerability is a key part of ensuring customers are treated fairly but identifying these customers is very difficult, especially when customers are unaware of their own vulnerability.
“One of the key issues for vulnerable customers is feeling overwhelmed by the information they are provided with. It is vital that companies strive to provide content that is easy to understand and entirely transparent.”