Simplifying fineprint, big plan of insurance companies

BENGALURU: New-age insurance startups are adopting multiple methods to simplify communication with customers in a bid to be a differentiator in the crowded insurance space.

While a few of the startups are simplifying the language of their write-ups, others are working on design elements like graphics, pictures and videos to explain product details to minimise confusion among customers.

Fairfax Financial-backed Digit Insurance has asked 15-year olds to approve the text before it communicates with customers. The idea is to help lay people understand the details of the complex insurance policy. “Along with every product we sell to customers, we send out a two-pager and the language in the text is certified by a 15-year-old. What is covered and what is not covered are all shown together. Then, we show what happens in case of a claim and what documents are required,” said Kamesh Goyal, chairman, Digit Insurance.

Goyal got the idea of involving children in the process when he failed to explain some of the details about the insurance sector to his son a few years back, when he was 15 years old. “My team took my experience very literally and involved children with a basic understanding of English through a non-governmental organisation in the communications process,” he said.

In the insurance business, terms and conditions have multiple regulatory and legal restrictions. Industry executives pointed out that any simplification of the communication to consumers need to be approved by legal and actuarial teams within the company. “It is a constant struggle, but there needs to be some simplification which can create a differentiator for the new age insurance companies,” said a top executive of an insure-tech startup.

Acko, a Bengaluru-based insurance startup, has dropped all complicated terms from their communication material to make the language simple enough for consumers.

Toffee Insurance is also working on creating simple messaging for consumers buying insurance products. The startup is stressing on visual elements to make things easier for customers. “Since the policy document is difficult to tinker, we create a two-page summary note for our customers, through which we explain in simple language what all are covered in the policy,” said Rohan Kumar, CEO, Toffee Insurance.

Source: The Economic Times