Three-quarters of people say clearer use of numbers in insurance would help them to use and understand the sector, according to research for the Association of British Insurers (ABI).
The findings were released as the trade body joined forces with charity Plain Numbers to help the industry support people who struggle with numeracy through better communications.
The ABI and its members have also pledged to double the number of apprenticeships across the insurance and long-term savings sector to 2,500 by 2025.
Both announcements were made as part of the trade body’s annual conference today.
Improving customer communications
The initiative with Plain Numbers is part of a wider drive by the insurance and long-term savings sector to strengthen customer trust and experience, including setting up a Consumer Advisory Group.
Plain Numbers works with firms to help their staff present and explain numbers as clearly and simply as possible to help improve customer understanding. It is also working with The Bank of England and HM Treasury.
Research conducted for the ABI by Yonder among 2,000 adults last month found that:
- 40% of people do not feel confident using numbers in their everyday lives;
- One-in-five people would avoid jobs that involve frequent use of numbers;
- 37% say easier access to online numeracy tools would help;
- 30% would like more number practice and 25% say that clearer explanations would increase their confidence in dealing with numbers;
- 71% cite better explanations of numbers used in insurance and long-term savings documents as helping to improve their interaction with the sector.
ABI director of policy, long-term savings and protection Dr Yvonne Braun, said: “Lack of confidence with numbers can make it very difficult for people to navigate their finances such as mortgages, insurance, retirement planning and, more generally, their household budgets.
“If our sector makes it much easier for people to understand numbers and their context, people’s financial resilience will grow.”
Mike Ellicock and Alison Plant, founders of Plain Numbers, added: “We are absolutely delighted to be working in partnership with the ABI and firms in the insurance and long-term savings sector.
“We see this partnership as a huge step forward in making sure that more people can understand the numbers that come with insurance. Together, we will help people make informed decisions and generate better consumer outcomes.”
Doubling apprentices
The apprenticeship commitment aims to boost socio-economic diversity at entry level across the industry and increase career opportunities around the UK.
The opportunities will be offered to school leavers and upwards to help reach those who might not otherwise have considered a career in the sector, the ABI said.
And it will increase access and inclusion by “boosting the number of entry level and training opportunities in the sector and building a workforce where talent can thrive, no matter what stage of their career or their background”.
There are currently around 1,200 apprentices working across the sector, in insurance-specific programmes and wider business schemes.
ABI director general Hannah Gurga said: “As one of the largest industries in the UK, employing 320,000 people, we have an important role to play in supporting and developing people’s careers throughout the country.
“Doubling the number of apprenticeships is an important step in our continued efforts to boost diversity and inclusion across the sector, to provide career opportunities at all levels and to ensure our workforce reflects the communities we serve.”