Department for Work and Pensions documents are so complicated it is "horrendous" trying to understand them, even for professionals, the marketing director of Canada Life Group Insurance has claimed.
Paul Avis said it was important for the Department for Work and Pensions (DWP) to focus on clearing up its own communications.
He commented: "The first thing the insurance industry needs is clarity from the government.
"We need to be able to tell consumers exactly how much state benefits will be, how long they will be payable, to whom, and how the assessment process works. At the moment, there is not enough clarity".
It is good to see the role of the employer highlighted in this report. Christine HusbandsWhile Canada Life Group Insurance responded to the DWP's November 2016 consultation, Improving Lives, via the Association of British Insurers, Group Risk Development and ILAG, Mr Avis said one of the common themes was the need for clarity.
He said: "One of the things we have suggested is that there should be a clear, easy-to-understand statement of benefits.
"For example, with pensions statements, you can write to the DWP and they will give you a summary of the benefits to which you are entitled. At the moment, the DWP cannot do this with state benefits, so people who are at risk of needing to claim do not know what they are entitled to.
"Furthermore, there are different state benefit calculators available, and they are all predicated on the person having a level of technical knowledge.
"The Employment and Support Allowance (ESA) 1 document, for example, is 56 pages long. ESA 50 is 21 pages. The DWP spoke about transparency in its joint consultation with the Department of Health, but it needs to be more transparent itself.
"If as a regulated insurer with a regulatory requirement to treat customers fairly, and to be clear in our communications, we were to compare what we do with what the DWP does, the DWP would fall foul of every FCA and PRA rule."
Mr Avis added: "If people knew the level of benefit they would really get, and they knew how horrendous the assessment process would be, they would be queuing at advisers' doors to buy income protection."
He pointed to the cost to the state of people being out of work through accident and sickness as a sign that insurance could help to bridge the gap.
The ABI estimated in 2014 the cost of out of work benefits to the UK to be about £36bn. "You can see after the NHS and pensions, this has to be the area of focus for the government."
In a recent Green Paper consultation, group income protection was highlighted as one of the solutions for the retention of people with disability in the workplace.
That said, people had to stop thinking the state will provide - or that 'it won't happen to me', Mr Avis added.
Also in response to the Improving Lives Green Paper, Christine Husbands, managing director of RedArc, welcomed the report but acknowledged it was a "complex issue".
She said: "It is pleasing to see such a comprehensive report covering what is a complex issue with lots of interested parties and the clear commitment from government to tackle these issues.
"Furthermore, it is good to see the role of the employer highlighted in this report. RedArc has supported over 27,000 people through serious illness, disability, trauma and bereavement, the majority of whom meet the definition of disabled under the Equality Act, although many would not view themselves as disabled."
Ms Husbands added that something needed to fill the gap caused by the additional strain on the NHS, and an insurance policy that focused on getting people back to work, would be beneficial.
She said: "With such long delays in getting treatment on the NHS, such as counselling and physiotherapy, employees can deteriorate during this period.
"Therefore a support service which can provide these services quickly is obviously very welcome both to the employee and the employer.
"In our experience, practical advice and emotional support is often valued more than the financial assistance provided by insurance policies.
"The Green Paper recognises that support is needed, and that employers have an important role to play. This is an opportunity to make sure the right support is available to those that need it."
simoney.kyriakou@ft.com
