Nearly half of vulnerable customers struggle with insurance applications – GlobalData

Close to half of vulnerable customers find the insurance application process challenging, with 10.9% of consumers with a disability or long-term health condition having previously been denied insurance.

This is according to GlobalData’s 2025 UK Insurance Consumer Survey, which surveyed over 4,000 respondents to reveal that the time to complete the application (21.4%) was the most common complaint, while 18.7% felt particularly uneasy about the amount of medical information they had to disclose.

Meanwhile, 14.4% of respondents also felt that the questions were either difficult to understand or felt intrusive.

Beatriz Benito, lead insurance analyst at GlobalData, said: “While an insurer can demand forms that ask for more detailed information from a customer with a long-term illness and impairment, they cannot make the form longer or more complex than necessary.

”Yet the high proportion of vulnerable customers who found the application process difficult or intrusive signals that insurance firms may not be offering adequate support. Insurers could offer guided assistance to those requiring help when completing a written application form.”

Tightening regulation 

The FCA requires firms to take reasonable steps to ensure vulnerable customers receive fair treatment and make reasonable adjustments to enable disabled customers to access products and services more easily.

This is especially vital as the GlobalData survey revealed that nearly 20% (18.7%) of consumers consider themselves as having a disability or long-term health condition.

Benito adds: “If an insurer refuses cover, they must provide a clear, justifiable reason for the decision in writing – such a decision should not be based on prejudices or assumptions.

”Insurers should also be flexible to accommodate the specific needs of customers, for example by offering phone applications for customers who struggle with written forms. There needs to be a fine balance between getting the right level of information without making customers feel judged, overwhelmed or treated unfairly.

”Forms should be designed with plain and concise language and follow a logical structure. Meanwhile, vulnerable customers should not have to repeat the same information multiple times across different stages or agents.”