What are the benefits of using a broker as opposed to approaching an insurer direct? One, it might be argued, is that brokers can take the time to break down all that complicated policy wording so the insured truly knows what cover, and exclusions, they’re getting for their money… because right now, it seems they are certainly confused.
Aviva has carried out research which has revealed that many homeowners are in the dark when it comes to establishing what their policy covers. Research of 1,000 consumers found that 34% are frustrated by the lack of transparency about what a policy includes with most of them citing the right level of cover as the most important factor when they buy.
Amazingly, nearly one in three (30%) homeowners held the view that home insurance covers “anything that happens in their home”. Meanwhile, even more believe that accidental damage (59%) and personal belongings (46%) are covered by home insurance policies; while nearly three in ten (29%) think damage by pests or vermin is covered; and one in four (25%) expect policies to insure against damage to fences, whereas all can be common exclusions or depend on arranging additional cover.
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With policyholders clearly struggling to understand their cover, Aviva has launched a guide entitled “Busting the Myths of Home Insurance” which could aid brokers by explaining not only what a policy covers, in simple terms, but also the most common reasons for declined claims with advice on how homeowners can ensure they have the right cover in place.
In addition, the company is testing an Insurance Jargon Buster Skill on Alexa, giving users instant, voice-controlled access to a glossary of over 300 insurance terms and their definitions so customers wishing to know more about their home insurance can simply ask Alexa about insurance terms, such as personal belongings, accidental damage and common exclusions.
“We’ve already made changes to our policies and online journeys – by cutting the number of questions we ask and highlighting common exclusions – and we’re committed to making further improvements in future,” explained Lindsey Rix, managing director for Aviva UK’s personal lines business. “New innovations like the Insurance Jargon Buster Skill for Alexa are a real step forward in helping to explain common insurance terms for customers and making insurance easier to understand.”
A month after launch, the top three most commonly-asked terms related to insurance were: no claims discount, premium and accidental damage.
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