Consumer engagement with insurance is incredibly low and hardly anyone bothers to read policy documents which are dense and difficult.
It can pay to read the documents, however, as an American woman found when she won $10,000 for the simple act of bothering to read her new travel policy.
Insurance carrier Tin Leg secretly inserted a contest into their policy wording that offered $10,000 to the first person who read far enough into the terms and conditions and sent then an email to collect their prize.
Many start-ups are trying to redesign insurance products to make them more transparent and customer-centric. Given less than 1% of consumers read their travel policy, there is an opportunity to condense and simplify the key terms in a way that is of practical use to consumers.
When the company she bought from, Tin Leg — a subsidiary of Squaremouth — sent her the insurance policy, she sat down to read it. “I always read all the fine print,” she said, adding that her major in college was consumer economics. “I know I sound like a nerd, but I learned to read contracts so you don’t get taken advantage of.” Andrews was deep into page seven of the policy when something jumped out at her. “Pays to Read,” read the contract. It continued: “We estimate that less than 1 percent of travelers that purchase a travel insurance policy actually read all of their policy information — and we’re working to change that.” It said the first person to email the company and mention the fine-print contest would win $10,000. Andrews immediately emailed.