In 2021 Forbes reported that businesses were trusted more than nongovernmental organizations, media outlets and even the government. However, this trend has seemingly skipped over the insurance industry. According to FintechOS, “Just one in five customers across the United States, the United Kingdom, France, Germany, Italy, Japan and Switzerland consider insurers trustworthy. In the UK, two-thirds of consumers believe their insurer will do what it can to avoid having to hand over money.” This statistic is extremely concerning, considering the integral part that insurance plays in all our lives. It’s up to the insurance industry to mend its relations with consumers.
From my experience working in person at an insurance agency, much of the distrust of insurance companies comes from a lack of understanding how the business works and, more specifically, how coverage works. Many of the grievances I hear from clients derive from claim denials or learning they’re not covered for certain losses. Insureds feel as though they have been scammed and lied to by a company that has been taking their money but has now turned its back on them. Numerous clients have also expressed discomfort with providing underwriting information because they don’t understand why an insurance company would need sensitive data like household members, proof of address and employment information.
Unsurprisingly, the most prevalent complaint from clients is about the rise in premiums, especially in New Jersey where I am based. According to a recent article published by Insurance Thought Leadership, “The P&C industry has seen a $4.1 billion net underwriting gain for the first nine months of 2024 after raising annual car insurance premiums by 26%, on average, nationally.” Consumers have taken note of the increase in their premiums and the industry’s profits, which has made them more and more wary of insurance companies.
So, how can marketers help rebuild trust in the insurance industry? By doing what we do best: creating valuable, relatable and educational content. Much of the distrust in insurance stems from misinformation or a lack of understanding, so content should focus on breaking down complex topics in a way that clients can easily grasp. For example, explaining why premiums have risen or offering practical tips to help customers maximize their coverage — like bundling policies or taking advantage of discounts — can go a long way in building credibility.
However, one of the biggest pitfalls in insurance content marketing is the overuse of industry jargon. Nothing alienates a reader faster than confusing, technical language. As Forbes puts it, “While educating customers about the latest regulatory standards and emphasizing your stance on protecting their interests, it is key to do so in a humane manner. Jargon is the surest enemy of trust.” Speak to your audience in a way that feels approachable, transparent and relatable.
At the end of the day, trust is built through consistency, clarity and genuine connection. By prioritizing education and clear communication, insurance marketers can foster stronger relationships with their audience, turning skeptical consumers into loyal customers.
