Renewal with churchill

mikey72

dunstonh wrote: »

Apart from the ones making year 1 losses.

You really haven't though through the selling at a loss every time have you?
As it's a renewal, unless you are saying Churchills policy is to always make a loss, year on year at every renewal, it seems reasonable that the price offered includes profit for them. If a customer can get cheaper one year, and will move, it seems obvious they will do the same next year.
So how can the insurer magically recover the loss next year and hope the customer doesn't notice the extra £70 this time, or maybe it should be another £140 to cover the two years loss they will now have?

dunstonh

You really haven't though through the selling at a loss every time have you?

I have. I wonder sometimes if the providers have. However, many still do it at times to buy market share. I dont think you have though.

o how can the insurer magically recover the loss next year and hope the customer doesn't notice the extra £70 this time, or maybe it should be another £140 to cover the two years loss they will now have?

Because not everyone will leave on year 2 or 3 or 4. Plus, if they can sell bolt ons to the insurance, then the profit is on those rather than on the premium, In effect, the insurance premium becomes the loss leader.

lisyloo

Be a bit careful between cancellation and not renewing.
Make sure they understand you want your policy to not renew rather than cancel it immediately.
It can be easy to ahve misunderstandings with call centers so make sure they understand you want it to run through to completion but not renew.

mikey72

dunstonh wrote: »

I have. I wonder sometimes if the providers have. However, many still do it at times to buy market share. I dont think you have though.



Because not everyone will leave on year 2 or 3 or 4. Plus, if they can sell bolt ons to the insurance, then the profit is on those rather than on the premium, In effect, the insurance premium becomes the loss leader.

Seriously?
We are not dealing with a "what if they don't leave" here, we are dealing with the facts as stated, someone who has left for a cheaper quote, which the existing company can suddenly offer as well.
Are you claiming insurance is a loss leader in year one, so in year two, when the insurance companies put the premium up, and the customer decides to go elsewhere, there is actually a business plan in place to give another year at a loss, hoping the same customer will then not only not notice a massive increase in year three, but also take out more bolt ons?
Or are you saying that the bolt ons make so much profit that the difference of £71 is insignificant?
You're the IFA, so do you think that is sustainable, or do you think maybe there could be the outside chance that a profit is still made at the lower price, year on year.
(As a clue, the insurance companies are still here, the customers have been shopping round for years, and the advertised price matches have been round for years, and the shareholders have been paid dividends on profits for years, so the insurers appear to think it's worth doing)

The_Watcher

lisyloo wrote: »

Be a bit careful between cancellation and not renewing.
Make sure they understand you want your policy to not renew rather than cancel it immediately.
It can be easy to ahve misunderstandings with call centers so make sure they understand you want it to run through to completion but not renew.

Yes, I said very clearly that I'm not renewing!

lisyloo

Excellent.

I remeber a call I had (with BT I think) when I asked them about the charges for paying by cheque.
They insisted there were no charges and this went on for quite some time.
In fact there was a discount for paying by DD.

What I really should have asked was "Can you tell me how much more expensive it is to pay by cheque than DD", but because I used the word "charge", they refused outright to accept there was any charge and I didn't get the information I needed for quite some time.

It's very easy for misunderstandings to occur, but it seems super easy with call centers who are often working off scripts and not applying as much conscious thought as your average conversation.

Might have been my fault in that case, but they weren't giving me any help at all in getting to the bottom of what I wanted to know, they just answered the exact question asked.

dunstonh

Yes, I said very clearly that I'm not renewing!

lisyloo was just pointing it out. We have seen a number of occasions people post here saying they have been charged for not renewing all because they used the wrong terminology (said cancel rather than not renew). So, no need to be blunt in your reply.

You're the IFA, so do you think that is sustainable

No I don't. However, insurance companies have been cross subsidising and buying market share at a loss for years. Every now and then some try to break the cycle but inevitably they go back on it.

(As a clue, the insurance companies are still here, the customers have been shopping round for years, and the advertised price matches have been round for years, and the shareholders have been paid dividends on profits for years, so the insurers appear to think it's worth doing)

Profits were higher in the past. In real terms, insurance premiums "in general" are not far from all time lows.

mikey72

dunstonh wrote: »

insurance premiums "in general" are not far from all time lows.

:rotfl::rotfl::rotfl:

Yes, done this to death already. Record profits disagree with you.

https://forums.moneysavingexpert.com/discussion/2706419

"I am an Independent Financial Adviser. "

probably not one I'd use.

Quote

Are these profits from vehicle insurance?

mikey72

Quote wrote: »

Are these profits from vehicle insurance?

Done this to death already,

“The UK car insurance business continues to be the driving force behind our success and in the first half of 2010 we shifted up yet another gear."

re-read the thread.