Insurance claim jargon: initiative launched

May 15, 2014 10:32 am

One of the issues we often come up against when managing someone’s insurance claim is that they have misunderstood the wording of their insurance policy. It’s hardly surprising as this wording is often impenetrable and confusing.

So we welcome the recent announcement by one major insurer that they are launching a new “claims transparency initiative designed to make the claims process much clearer for customers”. AXA has produced a set of documents which “cut through the jargon and legalistic style to highlight in plain English simple measures that customers can take to help them avoid breaching the policy terms and having a claim turned down”.

This comes against the background of the review by the Financial Conduct Authority of how customers are treated when they make a claim, which we have written about before. One key area of this is the clarity of product documentation, so AXA’s initiative is one of the first concrete signs that the industry is responding.

The first phase of AXA’s project includes improving the clarity of wording on lack of maintenance of roofs prior to storm claims. This is also something we wrote about recently, in particular about the high number of complaints to the Financial Ombudsman Service over rejected storm claims. So the initiative is doubly welcome.

We’ll be watching developments closely.