The insurance industry needs to be honest with clients about the reasons for premium rises and use data and analytics more effectively to dispel a “dark arts” image, according to Aon Australia CEO Jennifer Richards.

Speaking at the National Insurance Brokers Association Convention in Adelaide last month, Ms Richards said “not shying away from discussions” is key.

“A huge piece of this is transparency and being really honest with our clients as to what is driving the particular environment that they’re in – whether it’s a property discussion, a cyber discussion, a liability discussion,” she said.

“Frequently, people will be apologetic or look to say ‘Oh, well it’s not that expensive.’ That does not create trust.”

Using data to give clients a clearer picture around pricing or coverage “is really critical”, she said.

“That’s why I get really excited about the age in which we live. We are able to drive so many more rich discussions around analytics, data that supports pricing models, availability in the market for different options.

“It takes away a lot of the mystery around our industry.”

She said clients have previously told her that insurance is “a bit of a dark art”.

“The more we get away from the dark arts, the better for our industry and our relevance.”