Document Type

Article

Publication Date

2023

Abstract

Insurance consumers, the intermediaries who serve them, and the regulators who protect them all would benefit from understandable consumer insurance contracts. This article outlines the benefits of understandable insurance contracts, identifies the regulatory tools that are or can be used to ensure such comprehensibility, and reviews the existing literature about how well consumers comprehend their insurance policies within the context of personal lines insurance in the U.S. The article concludes by proposing an empirical research strategy to study consumers’ understanding of the terms of homeowners insurance policies and, even when they have not read their policies, their expectations about coverage.

Comments

© 2023 by International Academy of Financial Consumers. Originally published as Logue, Kyle D., Daniel Schwarcz, and Brenda J. Cude. "The Value of Understandable Consumer Insurance Contracts." The International Review of Financial Consumers 8, no. 1 (2023): 1-15. DOI: https://doi.org/10.36544/irfc.2023.8-1.1


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