The Canadian Council of Insurance Regulators (CCIR) released a paper this week that suggests insurance companies should improve the way they interact with customers regarding home insurance. In the report, CCIR says companies should better educate consumers and help them understand the terms of a policy, such as limitations, deductibles, and exclusions.
By improving lines of communication, companies will help customers make the right choices. The paper also suggests insurers should share aggregate property risk data as it could help improve building codes.
The Findings Report & Position Paper: Natural Catastrophes and Personal Property Insurance paper says there is “value and need for direct and clear communications with consumers and intermediaries regarding coverages.”
CCIR says it “encourages stakeholders to better collaborate so that aggregated risk data is made more readily available to support the conditions necessary to enhance preparedness, as well as the affordability and availability of natural catastrophe insurance.”
“Given the role of modelling results and data inputs, a number of respondents emphasized the importance of and opportunities for collaboration, research partnerships and information sharing among stakeholders, including governments, private sectors, academia, insurers and homeowners,” CCIR said in its findings report and position paper. Such information-sharing, according to stakeholder feedback, “can assist in updating building codes, identifying infrastructural needs, inform decisions regarding the location of future developments and equip homeowners with information on methods to mitigate their personal risks,” CCIR added.