From promises to performance: The power of clear and transparent communication in insurance policies
September 2023
In the world of insurance, trust and reliability are paramount. Throughout the world, customers make provisions for their future retirement and well-being through insurance savings policies. They place their trust in insurance companies to deliver on the promises made. It is the duty of insurance companies to meet those expectations to the best of their ability.
How insurance companies engage and communicate with customers will affect their understanding of the products and influence their interpretation of the promises made. Well-informed customers are more likely to have realistic expectations of how the products will perform. Clear and transparent communication with customers is a crucial component of treating customers fairly and shaping policyholders’ reasonable expectations. Regulators are paying increasing attention to this issue. Insurance companies need to remain vigilant in how they conduct their sales processes and what they communicate to customers regarding future performance.
In this article, we explain why ensuring clear and transparent communication is at the core of fair treatment for customers. It not only upholds ethical standards but also fosters sustainable relationships with policyholders. We provide ‘food for thought’ on healthy communications and offer suggestions on how to improve it.
