As many as one in ten susceptible prospects are being turned down for insurance coverage as per a GlobalData survey. Many susceptible prospects are left feeling uneasy and judged in regards to the insurance coverage utility course of, suggesting the trade has some method to go to handle this difficulty.
In accordance with GlobalData’s 2025 UK Insurance coverage Client Survey, 10.9% of shoppers with a incapacity or long-term well being situation cite having beforehand been denied insurance coverage. Furthermore, near half of susceptible prospects discover the insurance coverage utility difficult. The time to finish the applying (21.4%) is the commonest criticism, however respondents additionally really feel significantly uneasy in regards to the quantity of medical data they need to disclose (18.7%), whereas additionally feeling the questions have been both obscure or felt intrusive (14.4%).
Susceptible prospects are particularly prone to detriment due to their private circumstances, which may embody long-term sickness, psychological sickness, or bodily incapacity. Whereas an insurer can demand kinds that ask for extra detailed data from a buyer with a long-term sickness and/or impairment, they can not make the shape longer or extra advanced than vital. But the excessive proportion of susceptible prospects who discovered the applying course of troublesome or intrusive alerts that insurance coverage corporations might not be providing ample help. Insurers might supply guided help to these requiring assist when finishing a written utility type. They need to even be versatile to accommodate the particular wants of consumers, for instance by providing cellphone purposes for patrons who wrestle with written kinds. There must be a high quality steadiness between getting the best stage of data with out making prospects really feel judged, overwhelmed, or handled unfairly. Varieties needs to be designed with plain and concise language and comply with a logical construction. In the meantime, susceptible prospects mustn’t should repeat the identical data a number of instances throughout completely different levels or brokers.
The Monetary Conduct Authority requires corporations to take cheap steps to make sure susceptible prospects obtain honest remedy. Corporations are anticipated to make cheap changes to allow disabled prospects to entry services and products extra simply. As an illustration, if an insurer refuses cowl, they need to present a transparent, justifiable cause for the choice in writing; such a call shouldn’t be based mostly on prejudices or assumptions.
Additional knowledge from our survey reveals the magnitude of the issue, as 18.7% of shoppers contemplate themselves as having a incapacity or long-term well being situation. But this presumably masks the true determine, as many susceptible prospects could not recognise or could not determine their very own vulnerability. This highlights the size of the problem, in addition to the significance of insurers with the ability to recognise a susceptible buyer from the primary touchpoint. Workers needs to be educated to pay attention actively, communicate clearly, and present empathy with a view to present extra optimistic experiences, transparency, and tailor-made help.
