Lying and omitting: 21 percent of Canadians under 35 don’t tell the truth on insurance applications
By ILSTV Staff on Apr 28, 2011 in Canadian Insurance
Almost all – 97 percent – of Canadians have at least some form of insurance coverage, but they haven’t always obtained their coverage honestly. According to TD Insurance’s 2011 State of Insurance Report, one-in-five (21 percent) Canadians under 35 admit they have purposely lied or omitted important facts when filling out an insurance application.
“Our poll uncovered some really eye-opening information. Whether intentional or not, failing to disclose important information to your insurance provider can put your insurance coverage at risk,” says TD Insurance Vice President and Chief Underwriter Henry Blumenthal, in a statement.
The report also found:
- One-quarter of respondents don’t know what their policies actually cover
- 51 percent of Canadians admit to just skimming the fine print of their insurance policies
- One-third (31 percent) haven’t read their insurance policy at all
- Almost three quarters of Canadians (72 percent) claim to have the right amount of coverage but the remaining quarter (24 percent) worry they don’t have enough or aren’t sure whether they have the right amount
I wouls shift the focus of this topic and ask the insurers, have you done enough to communicate with your policy holders so that they do know about the details of their coverage? In the J.D. Power and Associates auto insurance customer satisfaction study, 40% of the customers said they have never had a policy review after initially signing up with the insurer. Take the renewal notice and billing statement for example, it is more created to meet the regulatory and internal financial reporting rules than to meet the customers’ needs.