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They brought it on themselves
foggytown
Posts: 325 Forumite
Just an observation. Most of the personal insurance industry is quite happy to participate in the proliferation of either comparison websites or DIY sites in the name of individual insurers. "We pass the savings on to you." blah, blah, etc.
These insurers are also deliberately offering big "introductory" discounts to attract new customers and increase market share. Comes year two and the premium level is increased by an eye-watering percentage to supposedly reflect the "proper" premium but, in reality, also to partially claw back some of that introductory discount.
Result? Insureds choke on the renewal, stampede for the comparison websites and end up switching to another insurer who is offering an introductory discount.
Is it illogical to speculate that insurers will be subsisting more and more on books of business made up of increasing levels of undercharged "discounted" policies held by first-year policy holders?
These insurers are also deliberately offering big "introductory" discounts to attract new customers and increase market share. Comes year two and the premium level is increased by an eye-watering percentage to supposedly reflect the "proper" premium but, in reality, also to partially claw back some of that introductory discount.
Result? Insureds choke on the renewal, stampede for the comparison websites and end up switching to another insurer who is offering an introductory discount.
Is it illogical to speculate that insurers will be subsisting more and more on books of business made up of increasing levels of undercharged "discounted" policies held by first-year policy holders?
42 years of experience in the insurance industry.
And nothing the industry tries do to us surprises me any more!
And nothing the industry tries do to us surprises me any more!
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Comments
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what??
please resubmit in say, Englishgarth;)0 -
What some insurers do to buy business in year one is illogical and its a business model that is not sustainable for the long term. Its no wonder that car insurance isnt profitable when you see the scale of discounts given.
I think it was Aviva that said they were going to stop doing it. They did and their market share dropped and now they are back doing it again.
it needs more of them to do it. One alone cant without committing commercial suicide.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
AAh the patronising response from the gibberish monkey
well done
Ill let you and your fellow Insurances get on with your party, It sounds like a whole load of fun.TTFNgarth;)0 -
Riveting isnt itgarth;)0
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Took you a day to think of a reply and it still doesnt make any sense.
Are all your posts anagrams?garth;)0
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