Military families believe insurers aren’t meeting their needs

They are the families of those who serve our country with everything they have – sometimes making the ultimate sacrifice. So you’d think that the least we could do is offer them the best possible service in return. It seems, however, that in the insurance world we’re failing to do so.

That’s the verdict of a new study by The Military Mutual, a financial services company for Military families, which has found that more than half of serving Military personnel, their families and veterans, believe insurers are not addressing their requirements. What’s more is that many feel underserved and let down.

The study found that 60% of those currently serving feel insurers don’t meet their needs – a figure that has almost doubled from 34% back in 2014. Many, it seems, feel as though the financial products they are offered don’t take into account their varied circumstances. These include insurers not taking into account the security of living arrangements (44%), not showing discretion and operating policies to the letter (44%), raising the price of car insurance even when a vehicle is parked in the barracks (41%), and failing to support customers during transitional phases – such as leaving active service or moving base (32%).

“We know the Military family is a square peg trying to fit into the insurance industry’s range of round holes,” said Major General (Ret’d) Sir Sebastian Roberts, chairman of The Military Mutual. “In many cases, the choice of insurance cover currently available has not been designed with this group of people in mind and, as a result, many in the Military family feel their needs are not being met, and are making do with products and service that for many is far from perfect.”

Among the immediate family of those serving, 46% said that financial services companies do not really understand the needs of people in the Armed Forces. Indeed 38% even went as far as to say that they simply didn’t trust the industry. Specifically, 32% said they dreaded making a claim or contacting an insurer because it was usually difficult; while 30% said they found it virtually impossible to find cover to genuinely meet their needs.

The situation is concerning among veterans too – 32% said insurers are not easy to reach.

However, there may be an opportunity for insurance brokers that are willing to truly listen to their clients and tailor products for their circumstances.

“Having spent considerable time listening to the serving, their families and the veteran community it is clear that the majority don’t just want cheap cover,” continued Roberts. “They want to deal with an organisation that understands their issues, speaks their language, and works to design services and products that take full account of their needs. They want someone that puts them first.”

The various ways insurance companies have not met the needs of current/former members of the military are outlined in the table below, according to The Military Mutual’s survey: