Swamped by regulation and paperwork when renewing my household insurance

[Brendan Burgess]

A neighbour asked me which insurance company I was with and whether or not I had flood cover. I knew that the broker was Glennons but I didn't know which insurance company and assumed I had flood cover.

As it happened, I had just got my renewal notice. I had to wade through 24 pages to find the information. There must be a better way to meet the regulatory requirements.

# pages
1	Glennons Cover letter
1	Guide on how to renew my policy
2	Renewal Policy Schedule - information
3 ½	Renewal Policy Schedule - data protection statement
½	Important notice on policy terms buried at the back of the data protection statement
6	Glennons Terms of Business including fees schedule
1	Consumer Distance Sales information
1	Payment options and renewal declaration
1	SEPA direct debit mandate
1	Glennon Easipay – Credit Agreement
2	Standard Euopean Consumer Credit Information
2	Insurance product information Document – Ah, I see the policy is with Allianz
1	Glennon Statement of Suitability
1	Premium breakdown summary
24	Total

 

[RedOnion]

requirements

Nope, it's a nightmare addressing every piece of legislation. You've documents there addressing CPC, GDPR, distance selling, SEPA and consumer credit (Irish and EU directives). On top of what you actually need for renewing your insurance.

CBI brought in a change last year about no claims bonus on motor policy. You now need to get a letter of NCB in addition to your certificate. On a separate piece of paper. Even allowing for the number of electronic documents, the industry said they requirement would lead to over 1m extra pages being printed by them each year.

 

[Brendan Burgess]

Nope,

Hi Red

By Nope do you mean that there is no better way?

Maybe what I mean is that there must be a better way to protect the customer than having multiple requirements which result in 24 sheets of paper. It's hard to find the really important information in there.

In fact, if the insurance company wanted to bury something, they probably could.

Brendan

 

[RedOnion]

Ah, sorry. To be compliant with all the varying legislation requires all this paper. But you're absolutely correct - there is so much legislation it's diluting consumer protection to a degree. You shouldn't have to review 20+ pages of documents to understand the key points of your insurance renewal.

How many people have ever actually got a 'statement of suitability' that was personalised and meaningful?

All the requirements are written in isolation, and individually it all makes sense. But when put together it's overwhelming to most people.

We see similar in the mortgage market - how many questions come up here every February when people get their statements asking if the bank is trying to trick them by offering a better rate on their mortgage?

 

[NoRegretsCoyote]

I find it very hard to make sense of insurance entitlements. I had a break-in last year and I really struggled to understand from the paperwork what I was entitled to claim for precisely. I had to keep cross-referencing specific with general conditions and I gave up.

I rang them up and they filled me in and I more or less took it on trust, but really a consumer should be able to do this independently.

 

[roker]

Look at the exclusion clause, one well known company has so many clause, even leaking water,, it's a wonder they ever pay out.
A person could be paying a policy for years only to find when they make a claim it's excluded

 

[cremeegg]

Having people attribute this to regulation suits the insurance company nicely.

It's called confusion marketing, and its prevalent in every sector where people more or less have to buy the product. Bank accounts with names and who knows what in the terms, mobile phone payment structures (though that area has improved).

The seller generates so much information that it is effectively incomprehensible. I am sure Brendan is capable of reviewing all that documentation and making sense of it, but most people would not be. I also imagine that many people would simply not bother, after all you either sign or go elsewhere, where you will be met with exactly the same scenario.

 

[Itchy]

Look at the exclusion clause, one well known company has so many clause, even leaking water,, it's a wonder they ever pay out.
A person could be paying a policy for years only to find when they make a claim it's excluded

Which company is that?

 

[elacsaplau]

There must be a better way to meet the regulatory requirements...……………..

# pages
1	…….
1	…...
2	…..
3 ½	…..
½	….
6
1	Consumer Distance Sales information
1	Payment options and renewal declaration
1	SEPA direct debit mandate
1	Glennon Easipay – Credit Agreement
2	Standard Euopean Consumer Credit Information
2	Insurance product information Document – Ah, I see the policy is with Allianz
1	Glennon Statement of Suitability
1	Premium breakdown summary
24

The CBI is the Regulator - this is just yet another example of its ineptitude. It is incapable of joined up thinking and of all the organisations that I've ever had to deal with, these guys take the McVities for the "computer says no" award!

 

[Black Sheep]

As I was recently renewing my car insurance recently (large Company) they asked if I would like a quote for home insurance. I said ok. A couple of minutes later she comes back with "we cannot give you a quote as you live on a flood plain".
I actually live on a hill which is named as part of my address. I find all insurance T&C's impossible to understand.

Perhaps water flows uphill in other parts of the country.

 

[roker]

Which company is that?

Not sure if I am allowed to say. Moderator please

 

[Leo]

Not sure if I am allowed to say. Moderator please

If it's published in their standard terms, no problems reproducing it here. Maybe a public airing of the T&Cs of all providers might allow for easier comparisons for those shopping around.