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 concerning the insurance coverage utility course of, suggesting the business has some technique to go to deal with this challenge.
In response to GlobalData’s 2025 UK Insurance coverage Shopper Survey, 10.9% of customers 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 appliance (21.4%) is the most typical criticism, however respondents additionally really feel significantly uneasy concerning the quantity of medical info they need to disclose (18.7%), whereas additionally feeling the questions had 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 types that ask for extra detailed info 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 appliance course of tough or intrusive alerts that insurance coverage companies will not be providing ample help. Insurers may provide guided help to these requiring assist when finishing a written utility type. They need to even be versatile to accommodate the precise wants of consumers, for instance by providing cellphone purposes for patrons who battle with written types. There must be a advantageous steadiness between getting the fitting degree 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 shouldn’t must repeat the identical info a number of occasions throughout completely different levels or brokers.
The Monetary Conduct Authority requires companies 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 extra simply. For example, if an insurer refuses cowl, they need to present a transparent, justifiable cause for the choice in writing; such a choice shouldn’t be based mostly on prejudices or assumptions.
Additional knowledge from our survey reveals the magnitude of the issue, as 18.7% of customers contemplate themselves as having a incapacity or long-term well being situation. But this probably masks the true determine, as many susceptible prospects might not recognise or might not establish their very own vulnerability. This highlights the dimensions of the problem, in addition to the significance of insurers having the ability to recognise a susceptible buyer from the primary touchpoint. Employees needs to be educated to hear actively, converse clearly, and present empathy as a way to present extra optimistic experiences, transparency, and tailor-made help.