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Lloyd’s guidance to simplify insurance policies

In October last year, we published a report that addressed the urgency with which the global insurance industry must invest and focus on clarifying and simplifying its products. The report: Building simpler insurance products to better protect customers was the second in a series that was produced as part of the insurance industry’s response to COVID-19.

Since the publication of the report, Lloyd’s has run a product simplification project in conjunction with the Lloyd’s Market Association (LMA) to further investigate and promote ways to improve the clarity of insurance contracts for the benefit of policy holders.

On 8 December 2021, we issued market guidance which sets out the actions that Lloyd’s expects managing agents, brokers and coverholders to take to simplify their insurance products.

December 2021

This guidance focuses on the need for insurance contracts to be as clear as possible and not assume an in depth understanding of insurance or law. 

There are several relatively simple steps which can be taken to ensure that insurance contracts are straightforward and easy to understand. Lloyd’s guidance suggests that the place to start is with the policies that individuals, micro-enterprises and small and medium enterprises are purchasing.

Harnessing the power of customer feedback

An important component of product simplification is being able to appropriately address customer feedback. To support our ‘Easy to understand insurance policies’ guidance, we have issued a report that explores the ways that the Lloyd’s market can better utilise customer feedback.

December 2021

This report explores how the Lloyd’s market is obtaining and harnessing the power of direct customer feedback from individual, microenterprise and SME policyholders.

If you have any questions about the content in either document, please contact us.