Insurance firms warned of grey areas as informal messaging becomes business norm

New grey areas are being created for insurance firms as informal messaging becomes more embedded in the delivery of professional advice.

That is according to Hiscox, which said that messaging apps such as WhatsApp and Signal are now used by 77% of professionals to interact with clients, reflecting a broader shift towards faster, more conversational business interactions.

They are closely followed by personal email (71%) and social media direct messages at 68%.

However, more than half (52%) of firms surveyed said they do not have a formal documented policy governing the use of informal communications in their business, despite 71% expressing concern that these channels could create legal, operational or professional liability risks.

Max Dobrov, consultancy and professional services sector lead at Hiscox UK, said: “Informal communication is now a normal part of how many businesses communicate. Clients expect fast, conversational interactions and professional services firms are responding.

“For most, the answer isn’t to avoid these channels. Used well, they can strengthen relationships, improve responsiveness and increase efficiency. But what feels informal in the moment can quickly take on real weight once it is written down, shared or taken out of context.”

‘Better integration’

Hiscox’s survey was conducted by Wakefield Research among 250 owners of UK professional services firms at organisations with 1 to 20 employees and no more than £5m in annual revenue.

It also showed that 42% feel pressure to always be available or respond immediately to clients, 22% experience messages being misinterpreted or taken out of context, 23% see contradictory advice provided across multiple channels and 32% see guidance given outside the agreed scope of work.

Hiscox said the findings underline the importance of clearer policies, staff training and better integration between messaging platforms and record-keeping systems as informal communications become a permanent feature of modern professional life.

Dobrov said: “There is growing recognition, both in business and in the legal system, that informal messages can form part of the formal record.

”That raises important questions around consistency, documentation, scope of advice and professional boundaries. The issue isn’t whether firms use these tools, but whether they have the right guardrails in place to use them with confidence.”