Commercial Insurance: Proposition & Communications Research

 

How to test customer understanding and perceptions of a Long-Term Undertaking 


Our client had a three-year Long-Term Undertaking (LTU) in place for certain types of small commercial clients. They needed to ensure that customers understood the product, its benefits and risks, and that communications met regulatory expectations, including Consumer Duty obligations for SMEs.


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The challenge

The client wanted to explore two key areas:

1. Perceived value of the LTU: understanding how customers interpret the benefits and risks associated with the product
2. Communications effectiveness: ensuring customers could understand the terms and conditions, and identifying any potential risks of harm

The challenge was to go beyond superficial understanding and uncover real comprehension, decision-making, and potential misinterpretations among small commercial clients.

The approach

We conducted primary qualitative research using in-depth interviews to explore customer understanding in detail.

c30 hour-long depth interviews with small commercial clients
 

Discussions focused on:
 • Perceptions of the LTU’s benefits and associated risks
• Comprehension of the LTU documents, including terms and conditions
• Identification of any areas of confusion, concern, or potential harm

This approach enabled a rich understanding of both rational and emotional responses, highlighting where communications were effective and where improvements were needed.

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A grey hexagon outline containing a star and a tick

The result

The research delivered actionable insight to support both product development and regulatory compliance.

Key outcomes included:
• Clear understanding of how clients perceive the value and risks of the LTU
• Identification of specific communication areas that caused misunderstanding or potential harm
• Recommendations to refine materials, improve clarity, and strengthen customer outcomes

The findings provided the client with confidence that the LTU proposition and communications were aligned with customer needs and regulatory expectations, helping to enhance both compliance and client satisfaction.