×

POLICY QUOTATION FORM

Please fill out this form and we will get back to you as soon as possible!

SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

CREATE AN ACCOUNT FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!

CREATE ACCOUNT

ALREADY HAVE AN ACCOUNT?
QUESTIONS? CALL: +1-888-3698790
  • LOGIN
  • GET A QUOTE

IciCoverage New Site

  • HOME
  • ABOUT US
  • PRODUCTS & SERVICES
  • FAQ
  • BLOG
  • CONTACT US
  • Home
  • Blog
  • Customers aren’t reading 85% of their insurance policies
17 April, 2021

BLOG & Gossip

Customers aren’t reading 85% of their insurance policies

by Desiree Colmenares / Monday, 21 November 2016 / Published in Blog

According to a research from SunLife –a company in the UK specialized in making the financial world more accessible and easy to understand- insurance customers ignore 85% of the information sent by their providers.

The reason for this behavior is that, according to the insurer, on average insurance products come with “more than 25,000 words of explanation written in Ph.D. level language.”

ShiftIInsurance also assures that the most basic insurance policies contain between 20 to 30 pages of insurance terms, conditions, exclusions, and jargon that most people are just not interested in spending their time reading.

Ian Atkinson, head of the brand at SunLife said. “Over three hours’ worth of reading – often written in complex language – feels like a big commitment to have to make every time you buy an insurance product. One of the big enemies for getting the right cover is complexity.”

insurance policies

Additionally, Sunlife revealed that if customers would read every insurance policy they are sent, they would spend an entire month of their lives reading it.

“The average reader should take between three and three and a half hours to understand the average life, health, home and travel insurance documents, in general customers are just actually spending 27 minutes reading through policy documents.”

The research also found that the average insurance product comes with 25,669 words of explanation (more than Shakespeare’s Romeo and Juliet) and takes as much effort to understand.

SunLife discovered that travel insurance policies and health insurance policies are more complicated to understand and takes longer to read (About 3 hours 33 minutes and 3 hours 15 minutes respectively).

The company warned insurance companies that customers are avoiding reading the majority of the texts and reading just 15%. This could mean the clients do not understand the cover they are paying for.

A wake-up call for insurance companies:

The SunLife research should become a warning call for insurers and insurance companies to find better ways to explain policy information to their customers, in order to let them fully understand the key information they need to know.

Regardless of the type of insurance, there is always some key information to look at, according to The Co-operators:

  • Policy number – you will need this when calling to make a change to your policy or report a claim.
  • Dates – the effective date and expiry date outlines when your coverage is in place.
  • Underwriter – another way of saying “insurer” or “insurance company”.
  • Insured – your name; the contract of insurance is between you and the insurance company.
  • Additional named insured – the name of a co-owner of a vehicle or property; they have the same rights as you.
  • Legal liability – you will usually see a coverage limit of $1 million or $2 million; it provides coverage for amounts you’re legally responsible for if you unintentionally cause bodily injury or property damage to others.
  • Premium – the cost of your insurance policy.

Sources:

https://www.shiftins.com/blog/how-do-i-read-a-car-insurance-policy/

http://www.covermagazine.co.uk/cover/news/2469033/customers-only-read-15-of-insurance-documents-they-receive

http://www.cooperators.ca/en/Answer-Centre/am-i-covered/auto-covered/understanding-your-policy.aspx

 

 

0
Tagged under: Container Insurance, insurance documents, insurance policies, insurance products, reading insurance, understand insurance

About Desiree Colmenares

What you can read next

Mobile payment app will be released by Allianz and Visa
Top insurance trends for 2017 according to experts
Why is Big Data important for insurance industry?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Cargo Insurance

    Cargo insurance basics: What is it? Do you need it?

    Every day, cargo valued in billions of dollars ...
  • Allianz starts ambitious climate change protection plan

    The Allianz Group is significantly expanding it...
  • Why is cargo insurance important: The Maersk Honam case

    By law, all shipping carriers are forced to off...
  • Robotics in the insurance industry: The Brightside case

    Robotics in the insurance industry is starting ...
  • Allianz Lanka is created after Allianz’ acquisition of Sri Lankan general insurance unit

    Allianz announced the creation of Allianz Insur...

ICI Twitter
icicoverageInternational Container Insurance@icicoverage·
4h

Danish offshore energy technology firm Welltec has won an exclusive three-year contract from Malaysian energy major Petronas.
By @Splash_247
https://t.co/MwRDxtO1GZ

Reply on TwitterRetweet on TwitterLike on TwitterTwitter
icicoverageInternational Container Insurance@icicoverage·
8h

Port of Koper has chosen the Belgium-based automation company Camco Technologies for the automated registration of its increasing container and rail wagon traffic.
By @container_news
https://t.co/lwFqtMhN8j

Reply on TwitterRetweet on TwitterLike on TwitterTwitter
icicoverageInternational Container Insurance@icicoverage·
10h

Oslo-listed BW LPG has sold its very large gas carrier (VLGC) BW Empress to Bangladesh-based Bashundhara Oil and Gas for approximately $40m.
By @Splash_247
https://t.co/hmwu9k6Ow2

Reply on TwitterRetweet on Twitter1Like on TwitterTwitter
icicoverageInternational Container Insurance@icicoverage·
15 Apr

New Zealand’s agriculture minister Damien O’Connor has announced the country will cease the export of livestock by sea following a transition period of up to two years.
By @Splash_247
https://t.co/qv8dvmYQDZ

Reply on TwitterRetweet on Twitter2Like on Twitter1Twitter
icicoverageInternational Container Insurance@icicoverage·
15 Apr

Denmark’s Maersk Tankers has sold six new LR2 product tankers to ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), VesselsValue data shows.
By @Splash_247
https://t.co/zglpz0Xx7q

Reply on TwitterRetweet on Twitter2Like on Twitter1Twitter
Load More...

ICI Facebook

Unable to display Facebook posts.
Show error

Error: The user must be an administrator, editor, or moderator of the page in order to impersonate it. If the page business requires Two Factor Authentication, the user also needs to enable Two Factor Authentication.
Type: OAuthException
Code: 190
Subcode: 492
Please refer to our Error Message Reference.

Navigation

  • Home
  • About Us
  • Products & Services
  • FAQ
  • Press
  • Blog
  • Contact Us

NEWSLETTER SIGNUP

By subscribing to our mailing list you will always be update with the latest news from us.

INTERNATIONAL CONTAINER INSURANCE

Fidelis Management Inc., P.O. Box 711 Juris Building
Main Street, Charlestown, Nevis.

PHONE NUMBERS

  • +1-888-3698790
  • Home
  • About Us
  • Products & Services
  • FAQ
  • Press
  • Blog
  • Contact Us
  • GET SOCIAL
IciCoverage New Site

© 2017 All rights reserved. International Container Insurance.

TOP