Recent studies by the National Literacy Trust have identified that nearly two thirds of the prison population have very poor literacy skills. This statistic is considerably higher than that of the general adult population and, as we explore below, highlights the importance of drafting clear and accessible policy wordings.

Having very poor literacy skills means that an individual can "understand short straightforward texts on familiar topics accurately and independently and obtain information from everyday sources but reading information from unfamiliar sources or on unfamiliar topics could cause problems."

While low literacy skills are, of course, not the sole cause of offending or re-offending, they act as a significant barrier for prisoners to engage with education whilst serving their sentence and access employment on release from prison, both of which have been shown to reduce re-offending. This highlights that an inability to engage with these opportunities may leave individuals stuck on a disadvantaged pathway.

Ofsted has published a framework for improved prison education and skills training, to better prepare prisoners for the job market on release. Effective from September 2026, the framework raises the standards for prison education to be more closely aligned with further education and skills provision in the community, and it also strengthens the focus on teaching reading and improving literacy as a foundation for everything else.

How does this apply to the insurance sector?

The National Literacy Trust’s findings serve as a stark reminder of the prevalence of poor literacy skills across the wider population as well as highlighting pockets of particular concern, of which the prison population is just one example.

Individuals with low literacy levels would be unable to understand a standard insurance policy, including what is required from them in the claims process, whether the policy is suitable for their needs and what exclusions are most likely to affect them. This may, in turn, lead to misrepresentation, non-disclosure and disputes that could have been avoided had the policy been clearer and more accessible. 

As well as being detrimental to the customer, each of these outcomes may have an operational, legal and reputational cost to insurers. The FCA's Consumer Duty highlights the importance of supporting customer understanding by using plain, intelligible language that is accessible for all.

For support with drafting clear, accessible policy wordings that meet the standards of the Consumer Duty, please contact our insurance policy drafting and distribution team.