A significant number of insurance policyholders here in the UK could be forking out more on their premiums than they might need to, thanks in no small part to being left confused by many of the primary insurance products available on the market.
That’s no sweeping generalisation, but an underlying fact arrived at after one of Britain’s leading insurance providers, Co-op, totted up the shock results of its most recent public poll.
It discovered that some 66% of UK policyholders consider insurance to be ‘too confusing’, whilst an equally surprising 1 in 3 find it difficult to comprehend just how their insurance providers go about calculating their premiums and the criteria applied.
And the alienation regarding knowing just what’s what with the most popular insurance products doesn’t end there either, as an additional 27% of Brits tend to remain in the dark when it comes to understanding why policy premiums vary year-on-year, whilst a figure said to be 7 in 10 are of the opinion that insurers themselves are neglecting to fully explain as to where the money paid by the insured party goes.
Co-op’s Products and Pricing Director, James Hillon said about the survey results;
“People are not just confused about where their money goes when it comes to insurance, but that they do have an appetite to know more. We feel it is important to engage with customers throughout their policy life with relevant solutions rather than just at point of claim and to focus on fairness and simplicity.”
Confusion may reign over insurance premiums, yet claim pay-outs are hitting new heights
Still, despite UK insurance policyholders not being totally au fait with the integral workings of their policies (and necessarily being familiar with how their premiums are spent), they will be nevertheless buoyed with news that the Association of British Insurers (ABI) have released over the same period as Co-op’s study, which at least paints a healthy claim pay-out picture in terms of a variety of insurance products.
Indeed, according to the ABI the vast majority of claims made on insurance policies are successfully paid-out to policyholders, with car insurance, home insurance and travel insurance policies proving to be the best in this area.
With pay-out rates confirmed as presently standing at 99%, 87% and 79% respectively (relating specifically to claims received and processed between 2013 and 2014), the ABI determined that average amounts paid-out during this passage of time in question equated to £2,169 (car insurance claims), £884 (travel) and £2,520 (with regards to household).
Alternatively going to lengths to describe why, conversely, a percentage of claims are refused, the ABI’s Director General, Huw Evans pointed at policyholders having purchased an unsuitable insurance product or not imparting vital information as reasons why claims have been denied, brought about by this aforementioned lack of understanding; which subsequently could lead to policyholders losing money on their insurance.