Two years after the Financial Conduct Authority’s (FCA’s) Consumer Duty came in, Fairer Finance found that most financial providers had not cut the size or complexity of their documents.
Fairer Finance tracked word counts across the sector, with travel insurance policy documents averaging 22,666 words, while investment terms and conditions averaged 21,523 words.
Home insurance came in at 18,802 words.
Car insurance documents averaged 16,504 words and bank accounts averaged 15,859 words.
James Daley, managing director at Fairer Finance, said: “Two years on from the introduction of Consumer Duty and many policy documents and Ts&Cs from across financial services are still far too complex and lengthy.
“The longer these documents are, the less likely consumers are to engage with them, and the harder they are for customers to understand.
“Helping consumers understand the complexity of these products is essential if we’re to create a fair financial services market which people can trust and have confidence in.”
Daley added: “We know from working with dozens of firms in the sector that it is possible to shorten these complex documents and make them clear and accessible for customers.
“But many firms have not started the hard work that Consumer Duty requires them to do.
“The grace period is now over – and we expect the regulator to start holding companies to account where they are ignoring the Consumer Duty.”
