Two in three Brits find insurance confusing

The majority of Britons are confused by insurance, meaning they may be spending more than they need to.

Research from Co-op Insurance has revealed …

The majority of Britons are confused by insurance, meaning they may be spending more than they need to.

Research from Co-op Insurance has revealed 66 per cent of people find the subject "too confusing", while one in three struggle to understand how their insurance premiums are calculated. 

A further 27 per cent of Britons do not understand why the cost of insurance varies from year to year and more than seven in ten believe insurers do not provide enough detail on how the money they pay is used.

James Hillon, products and pricing director at Co-op Insurance, commented: "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. "

The Co-op's research has coincided with the release of statistics from the Association of British Insurers (ABI) that show the vast majority of claims get paid out.

It has revealed motor, travel and home insurance claims had payout rates of 99 per cent, 87 per cent and 79 per cent respectively over the course of 2013 and 2014. Average payouts were £2,160 for motor, £884 for travel and £2,520 for home.

Huw Evans, director general of the ABI, said that many failed claims are the result of customers having purchased the wrong product or not disclosing important information – once again demonstrating that lack of understanding could lead to people losing money on their insurance.

Tell others:

shortlink