P/C Insurance Policies Confusing and Complicated to Consumers: Nationwide Survey

Most insurance policyholders would prefer to have a simple explanation of their insurance policy in terms they can understand and have policy details explained in a brief, one-page summary, according to survey results released by Nationwide Insurance. When asked to describe their insurance policy, consumers said their policy was too long (53 percent), complicated (43 percent), overwhelming (31 percent) and confusing (29 percent).

Nationwide Insurance commissioned the survey, which was conducted by Harris Interactive, who polled nearly 1,600 people who own property/casualty insurance.

More than half (57 percent) of consumers who responded to the survey feel they know more about their favorite prime-time television shows than they do about their insurance policies.

“Over time, insurance policies have become legal documents written to reflect state laws and to outline coverages in detail so consumers know what they are buying,” said Mark Pizzi, president and COO of Nationwide Insurance. “Nationwide understands the importance of helping our members understand their policy. Encouraging consumers to have a conversation with their agent is one of the best ways to educate them about what they are buying.”

Other results from the survey showed that:

Nationwide Insurance believes that making changes to insurance laws would make it easier for insurance companies to deliver their policies in a manner that would be simpler for consumers to read and understand. Those changes include:

Nationwide Insurance has already begun to make changes to its products and services to simplify the insurance experience for its members.

“Are we shocked at the results of our research? No. But it highlights the need for Nationwide to continue to work with our regulatory partners to make it easier for our members to understand the insurance protection they are purchasing,” said Pizzi. “Being in a situation where you need to use your insurance is difficult enough. Understanding the key elements of your policy should be easy.”

Visit Nationwide’s website to see the complete results of the survey.

Source: Nationwide Insurance