Original text here from Patrice Bernard (LinkedIn)
The murder of UnitedHealthCare’s CEO in the United States has sparked deep introspection within the health insurance industry, as it grapples with the reasons behind its poor public perception. Forrester has put forth an interesting perspective—one that focuses on communication—which could be relevant to the entire financial sector.
At the heart of the issue, analysts point to the language used in customer interactions, particularly in contract terms and coverage explanations. The connection between clear communication, trust, and customer relationships is obvious: any gap between what an insurer actually covers and what policyholders believe they’re entitled to is a recipe for conflict and mistrust.
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Yet, while insurance companies often believe that their documentation and customer-facing materials are crystal clear, research suggests otherwise. A recent survey found that only half of U.S. adults can easily understand their insurance policies, meaning the other half has doubts about their actual coverage. Worse, this trend is deteriorating—the comprehension rate dropped from 59% in 2022 to 57% in 2023.
Digging deeper, the situation becomes even more concerning: 9 out of 10 respondents expressed a strong desire for greater clarity, particularly regarding which services they are entitled to and the costs involved. Another study conducted last year highlighted that website readability was the second most important trust factor for health insurance companies.
To address this widespread issue, Forrester suggests that insurers listen more closely to customer inquiries, whether through support interactions or claims requests. Customers naturally flag confusing terms and concepts, providing an opportunity for insurers to identify and replace unclear jargon. More broadly, companies should analyze and adopt the language that policyholders themselves use, ensuring that communications align with customer expectations. In my opinion, dedicated customer surveys could be a valuable tool in this effort.
Of course, this challenge isn’t limited to health insurance. The same issues arise in property & casualty insurance, where misunderstandings around coverage and exclusions create similar disputes. Likewise, in banking, unclear product descriptions can mislead customers, while excessive financial jargon often alienates them altogether. Ultimately, clear communication isn’t just about transparency—it’s about respect. Adapting language to the audience isn’t merely good business practice; it’s a fundamental gesture of consideration toward customers.
