Lloyds has published a report today – Building simpler insurance products to better protect customers which sets out a number of ways the global insurance industry can remove complexity to provide enhanced coverage clarity for their customers.
The report talks about the existing practices that are deemed good and which help customers understand the products more clearly. It goes on to talk about innovation’s role in moving the industry forward in this regard and sets out some recommendations :
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Leverage and build on the application of existing leading practice including a linguistics review of customer documentation – for both simple and more complex products;
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Invest in continuous product design and delivery innovations including through data-led policies and digital contracts, as well as exploring more radical options like parametric or outcome-based insurance; and
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Involve customers directly in product design to build simpler, more relevant products for their changing needs and post pandemic risk profiles.