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Most Insurance Websites Do Not Communicate with the Average Consumer

Insurance companies and financial services organizations remain the least trusted by consumers, according to the Edelman Trust Barometer. Yet, insurers expect consumers to trust them with their families’ health, homes and financial futures. So why is there such a mismatch?

In 2019, research was conducted examining whether leading insurance organizations clearly communicate with their audience. The results shows that complex, obtuse language diminishes trust. Legalese is not accessible to the average North American consumer. This complex legal language used in most insurance websites. Consumers want to easily understand product descriptions, terms and conditions.

  • 79% of insurance websites do not communicate with the average consumer
  • Just two insurance websites are simpler to read than Moby Dick
  •  Complex word density is an issue for 100% of the insurance websites analyzed
  • All insurance websites analyzed communicate in an academic tone with overuse of
    passive voice and long sentences

Legalese – A bona fide way to lose trust

Legalese is complex and difficult for anyone outside of the legal profession to understand. It’s a language difficult for ordinary people to understand. Yet, it is used the world over by insurance organizations. Instead of using words like ‘bona fide’ why not use ‘definite’? This engages consumers with your content. Complex language on the other hand confuses consumers and this leads to distrust.

Insurance firms bank on trust. They are asking consumers to trust them to be there when things go wrong. A car accident, a water leak at home or a health issue are just a couple of examples of the serious life events in which consumers rely on insurance companies for support. Yet, insurance companies as part of financial services are the least trusted industry according to the Edelman Trust Barometer.

To regain trust, insurers should focus on simplifying terms & conditions and product information. Banishing legalese and communicating in plain language is key to achieving this goal.

79% of insurance websites do not communicate with the average consumer

The average North American consumer reads at an 8th-grade level. Writing at this level or below makes it simple for most consumers to grasp information quickly. Insurers need to communicate with the entire population. This includes communities such as the elderly, disadvantaged or non-native speakers. To ensure everyone can really understand the terms of an insurance product, they should be written at a 6th-grade level.

When information is presented at a higher grade level, we force consumers to concentrate more and potentially abandon the effort. Research shows that 79% of North American insurance companies reviewed are writing above an 8th-grade level (up to grade 14). None are at or below a 6th-grade level. They are alienating audiences and are playing into the hands of competitors who choose plain communication.

Just 2 out of 54 insurance websites examined are simpler to read than Moby Dick

Readability is a measure of reading ease. Higher scores mean content is easier to understand and more accessible. Experts suggest aiming for a score of 60 when writing in plain English for the average American consumer. By way of example, Moby Dick scores 57.9 on this scale.

All websites analyzed communicate in an academic tone with overuse of passive voice

Passive voice conveys an academic tone, and is not as direct as active voice. Passive voice levels should be at 4% or lower.

No insurance site scored at the recommended level of long sentence use

Long, convoluted sentences make content harder to read. The insurers should aim for 5% long sentence use or less. Research reveals an average score of 18.62%. However, you can make more readable and accessible content by splitting long sentences.

Insurance organizations must rebuild consumer trust

Insurance companies are part of the least trusted industry. Consumers are asking for clear terms and easily accessed product / service information to regain trust. Research shows that most Insurance Websites Don’t Communicate With The Average Consumer.

Maintaining quality when content volumes are rising can be difficult

Even smaller insurance companies can struggle with the sheer volume of content produced. They must create and maintain website content, brochures, blogs, compliance documentation and more. Modern AI and NLP solutions can now help content teams identify complex content. Scoring content for metrics like the grade level improves content quality and accessibility.

Content is often produced by subject matter experts, who are not professional writers

Subject matter experts are a valuable source for new content. However, many are poor writers. Content teams struggle to review and edit content originating from subject matter experts. Here, technology can help. If you can analyze hundreds of documents or webpages in minutes, then you can drive plain language programs.

The content strategy needs to be managed as much as the content

Most industries struggle with content quality and clarity. Financial services is among the worst offenders. The causes can vary, but culture is often a large influence. For instance, content creators may assume complex content is desirable because that’s what they encounter elsewhere.

Culture can create a preconception that regulations and compliance matters must be complex. And because they are highly educated, industry employees overestimate the average customer’s sophistication. This is a more pronounced issue when the audience is disadvantaged. Leadership needs to define what quality means. Teams should be outfitted with the tools to efficiently enforce the standards.

Making simple changes can have a big impact on clarity

Insurance companies could improve their content by focusing on four simple changes:

  1. Reduce sentence length
  2.  Eliminate passive voice
  3. Choose less complex words
  4. Adopting technology to measure and benchmark content clarity