A recent survey by GlobalData has revealed a concerning trend in the insurance industry, highlighting a significant barrier for vulnerable customers. Nearly half of these individuals face challenges when applying for insurance, a stark reality that demands our attention.
The lead insurance analyst at GlobalData, Beatriz Benito, sheds light on this issue, stating, "The high number of vulnerable customers struggling with the application process suggests a lack of support from insurance firms." This is particularly alarming when considering that 10.9% of consumers with disabilities or long-term health conditions have been denied insurance in the past.
GlobalData's 2025 UK Insurance Consumer Survey, which surveyed over 4,000 participants, delves deeper into these concerns. The most common complaint (21.4%) was the time it took to complete the application, followed by the uneasiness (18.7%) felt by those having to disclose extensive medical information. Additionally, 14.4% of respondents found the questions either confusing or invasive.
Benito emphasizes the need for insurers to strike a balance, ensuring they obtain the necessary information without making customers feel judged or treated unfairly. She suggests guided assistance for those requiring help with written applications, a simple yet effective solution to improve the experience for vulnerable customers.
But here's where it gets controversial... The Financial Conduct Authority (FCA) has implemented regulations requiring firms to take reasonable steps to ensure fair treatment for vulnerable customers and make adjustments to accommodate disabled individuals. However, the survey's revelation that nearly 20% of consumers consider themselves disabled or having a long-term health condition underscores the urgency of these regulations.
Benito adds, "Insurers must provide clear, justifiable reasons in writing for any refusals of cover, avoiding any biases or assumptions. They should also be adaptable, offering alternatives like phone applications for those who struggle with written forms."
And this is the part most people miss... The design of application forms is crucial. They should be straightforward, using plain language and a logical structure. Vulnerable customers should not be subjected to repetitive questions or have to navigate through multiple agents, a process that can be overwhelming.
This issue has been reported on by Harriet Scott, a journalist at Insurance Times. With a master's degree in journalism and a range of freelance experience, Scott covers various sectors and industry trends. Her work highlights the importance of addressing these challenges to ensure a fair and inclusive insurance landscape.
So, what's your take on this? Do you think insurance companies are doing enough to support vulnerable customers? Share your thoughts in the comments below!
