Lloyd’s of London has launched a new review of its insurance contracts, taking a new look at the way products are created and sold. The purpose is to develop simpler products in response to the COVID-19 pandemic.Risk Management
Insurers have suffered considerable reputational damage due to the complexity of their products. This complexity in insurance contracts has made it difficult for businesses to understand.
The result has been a wave of court cases meant to decide whether policyholders are covered for the losses they suffered in pandemic countries such as the United States, the United Kingdom and France.
Even before the outcomes of those cases, insurers have experienced notable harm to their reputations.
“The insurance industry must urgently reassess how it can better serve and support its customers,” said John Neal, chief exec at Lloyd’s, in a statement. He explained that it has become critical to build more straightforward insurance products which are easier to understand.