Insurance Jargon vs. Clear Language: Which Companies Explain Their Products Best?
Have you ever read an insurance policy description online and felt more confused than when you started? You're not alone. Insurance products are complex, but how companies explain them shouldn't be. A new study by Wortliga Tools GmbH sheds light on which major German insurers are succeeding in clear communication—and which are falling behind. The findings reveal a significant gap in customer-centric communication, with leaders like ERGO and Continentale setting the standard, while others struggle with complexity just as new accessibility laws loom on the horizon.
The Clear Communication Champions
For the second year, Wortliga analyzed the online product descriptions of Germany's largest insurers, scoring them on a comprehensibility index. The results highlight a clear divide:
- ERGO leads the pack with a score of 60.4 points, maintaining its top position as a master of clear insurance language.
- Continentale follows closely with 59.2 points, praised for its customer-friendly wording.
- The most improved insurers were Debeka (up 19.12%) and HDI (up 8.65%), showing that focused efforts to simplify language can yield rapid results.
"Both ERGO and Continentale use a clear, customer-friendly language. They maintain their position as industry leaders in terms of comprehensibility," says Wagner, Managing Director of Wortliga. These companies demonstrate that explaining auto insurance, home insurance, or liability coverage in plain terms is not only possible but a competitive advantage.
The Struggle with Complexity: Who Needs to Improve?
Despite some progress, the overall picture is concerning. The majority of insurers still score below the 60-point threshold, which Wortliga defines as the benchmark for "customer-friendly texts." Some notable companies saw their scores decline:
- Generali (-9.20%)
- Allianz (-5.96%)
- VHV (-5.56%)
Interestingly, Generali, the year's biggest decliner, actually improved the clarity of its core texts. However, it expanded its online information with a comprehensive Q&A section written in more complex language, dragging down its overall score. This highlights a critical lesson: consistency in plain language communication across all customer touchpoints is essential.
The Legal Imperative: The Barrierefreiheitsstärkungsgesetz
The urgency for improvement isn't just about customer satisfaction—it's soon to be a legal requirement. The Barrierefreiheitsstärkungsgesetz (Barrier-Free Reinforcement Act) comes into force on June 28, 2025. This law mandates that digital services, including company websites, must be accessible. A core component of accessibility is linguistic clarity and ease of understanding.
Insurers who proactively simplify their online communication will not only comply with the law ahead of time but will also secure a significant competitive edge. Clear explanations build customer trust, reduce inquiry volumes, and can directly influence purchasing decisions.
Why Clear Language Matters for Your Insurance Decisions
As a consumer, you have the right to understand what you're buying. Opaque policy descriptions can lead to:
- Coverage Gaps: Misunderstanding terms and exclusions.
- Purchase Hesitation: Abandoning the research process due to confusion.
- Low Trust: Perceiving the company as intentionally complicated.
When insurers invest in transparent communication, they empower you to make informed choices about protecting your car, home, and family. It transforms the insurance experience from a daunting chore into a confident decision.
Your Action Plan as a Consumer
Use this insight to your advantage:
- Prioritize Clarity: When comparing insurance quotes online, favor companies that explain their coverage in straightforward language.
- Ask Questions: If something in a policy description is unclear, contact the insurer. Their willingness to explain in simple terms is a good indicator of their overall service approach.
- Hold Companies Accountable: Support insurers who demonstrate a commitment to transparency and plain language.
The insurance industry is built on the promise of protection. That promise starts with understanding. The 2024 study makes it clear: the race for clarity is on, and the winners will be those insurers—and customers—who champion plain language every step of the way.