Credit: Vitalii Vodolazskyi/Adobe Stock
Most U.S. consumers say insurers lack transparency in the claims cycle, according to a report by DocuSketch.
Overall, 54% of insurance customers say there is a lack of transparency in the process, while skepticism is more pronounced among older generations, the data showed, with 59% of Boomers and 61% of Gen X expressing doubt, compared to 44% of Millennials and 50% of Gen Z. At the same time, 45% of Americans say they don’t trust insurance brokers to act in their best interest.
“There is a fundamental misunderstanding between consumers and carriers on the insurance lifecycle, contributing to tension and frustration for both parties,” said Todd Sangid, enterprise solutions consultant at DocuSketch.
“Consumers feel they have a strong grasp on their insurance policies—74% say they feel confident in their understanding of what their policy covers yet they struggle with trust and transparency throughout the claims process,” he added. “Misunderstandings over policy language often slows down the claims process and creates frustration for carriers, contributing to tension on both sides.”
Consumers understanding of their policy falls short in key areas:
- Seventy-four percent of home owners say they feel confident in their understanding of what their insurance policy covers.
- Twenty-six percent didn’t know what to ask when shopping for a policy.
- Twenty-three percent felt confused by policy language.
“Miscommunication also plays a role in the breakdown of trust between carriers and consumers as poor communication and a lack of clarity over policy language can fuel mistrust,” Sangid told PropertyCasualty360.
“These challenges slow down time to payout, further exacerbating mistrust in the industry during moments that matter most,” he said. “Additionally, carriers aren’t at liberty to tell a customer exactly what to get in their policies, they can only point policyholders in the right direction.”
Meanwhile, 12% of Americans say they’ve suspected they were involved in an insurance fraud scam, according to DocuSketch, a number that rises to 21% among Millennials and 38% among Gen Z.
“While these suspicions don’t necessarily reflect actual fraud, they point to a deeper issue: when the claims process feels unclear or inconsistent, trust breaks down,” DocuSketch said in the report. “Poor communication, vague explanations, or missing documentation can all contribute to the sense that something isn’t right—even when everything is above board.”
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