Overcoming Communication Barriers in Insurance: Building Trust Between Policyholders and Insurance Carriers

As an insurance professional, have you ever filed an insurance claim against your own policy?  Imagine filing a claim after your home is damaged. You’ve answered the questions, provided the documents, and spoken with three different people at your insurance company. Yet every time, you’re left with more confusion than clarity. What’s happening isn’t just about policies or procedures.  It’s about communication.

In insurance, communication isn’t a side issue. It is THE issue. The way we explain coverage, process claims, and respond to policyholders defines whether trust is built or barriers are raised.

As a policyholder, you file a claim and feel the hesitation. “Are they going to cover these damages?” “I can’t afford to fix this.” Are you quick to assume the insurance carrier is looking to save themselves money? Were you told the insurance carrier will just deny your claim without an inspection? How many horror stories did you hear from your family, friends and neighbors about your insurance carrier?

Barriers are raised in many ways, and on both sides of the spectrum.  The policy is a barrier we can see, but are there any invisible barriers?

The Barriers We Don’t See

When most people think about barriers in insurance, they picture paperwork or regulations. But the real obstacles are often human. They show up in four ways:

• Language barriers – Not just English vs. Spanish, but jargon vs. plain speech. Terms like “exclusions,” “endorsements,” or “actual cash value” create distance when they aren’t explained clearly.

• Emotional barriers – Fear, frustration, and stress don’t just color communication; they distort it. A customer under stress may only hear half of what’s said. An adjuster under pressure may forget empathy.

• Attitudinal barriers – Distrust runs deep in our industry. Many policyholders believe insurers seek to deny claims, while many insurers suspect customers of exaggerating losses. That mutual skepticism poisons otherwise simple conversations.

• Organizational barriers – Legacy systems, siloed departments, and rigid procedures mean customers often get conflicting answers depending on who they talk to. The message isn’t consistent, which erodes confidence.

Each barrier compounds the others. A policyholder facing both language gaps and emotional stress, for example, will struggle far more than someone facing just one.

Why Logic Matters in Insurance

Visual barriers exist, and as I mentioned above, the insurance policy is an obvious one.  How many times have you heard a customer say they were never told by their agent their deductible increased.  Or, how many times did you receive a letter in the mail from your carrier and throw it away unsure of what changes were actually made to your policy?

Insurance contracts are written in a language that is supposed to be precise, but small choices in wording carry enormous weight. Take the difference between “and” and “or.”

• “We insure against risks of direct physical loss to property described in Coverages A and B.”

• “We insure against risks of direct physical loss to property described in Coverages A or B.”

The first requires both conditions to be true. The second requires only one. To a lawyer, that’s straightforward. To a policyholder, it’s a trap waiting to spring.

When we ignore how people actually process language, especially under stress, we set them up for misunderstanding. Clear, logical communication isn’t just about legal compliance; it’s about human comprehension.

Breaking the Cycle

So how do we lower these barriers? It starts with acknowledging they exist. Then we work deliberately to dismantle them.

• Lead with empathy. Before explaining, understand what the other person is feeling. Frustration, fear, or mistrust must be acknowledged.  A water stain to their ceiling means pure unadulterated chaos above it.  What they cannot see, they cannot fathom.  Their home and personal space is out of control.

• Translate jargon. Use plain language whenever possible, and explain necessary terms with patience.  You can discuss the agreed cost of repairs less the insured’s recoverable depreciation, less the policy deductible, for a net claim amount.  Or, you can let them know you are paying out the first payment so they can get started, and once they complete the repairs, request the recoverable depreciation.

• Check for clarity. Don’t just talk.  Ask policyholders to restate what they’ve heard. Miscommunication often hides in assumptions.

• Stay consistent. Align internal teams so customers aren’t hearing five versions of the same answer.  Quit siloing departments, and start building workshops for each department to learn an overview of the others’ processes and standard operating procedures.  Agents can learn how the claims department interprets the policy they are selling.  Actuarial sciences can learn how underwriting inspects properties for risk management.

• Respect context. Remember that culture, background, and life experience all shape how people interpret messages.  Take continuing education courses in crisis intervention and de-escalation tactics.

Too many times, carriers push all lines of communication to the customer service departments, yet forget the marketing teams promote their brand. Stop focusing on catchy gimmicks, and focus more on education and communication. Every time an insurer or adjuster chooses clarity over speed, empathy over efficiency, and consistency over convenience, trust begins to grow.

And, the next time you file an insurance claim, ask questions.  But, look past the emotional messaging and horror stories, and consider the basis for insurance in the first place: protecting you from your loss.

The Question We All Face

Barriers in communication are inevitable. But they don’t have to define the insurance experience. Each conversation is a chance to build trust…or reinforce a wall.

The real question is simple:

In our communication, are we building connections...or building barriers?