Churchill renewal a joke!

dacouch

adamc260 wrote: »

I tend to find (when looking at renewal) brokers are never competitive for me, they put me with companies like Groupama and MMA etc who charge me 3x what the 'mainstream' guys do, I guess I'm at that age though

They do tend to target middle of the road customers, your not missing out much as they are companies I try my best to avoid using as they are not great Insurers.

adamc260

dacouch wrote: »

They do tend to target middle of the road customers, your not missing out much as they are companies I try my best to avoid using as they are not great Insurers.

Aye! AXA has gone down the pan lately too!

Seems there isn't many 'great' insurers out there, but it's down to personal preference, if you've had a good experience somewhere thats all that matters... and while you may be happy to pay 'extra' for a 'good name' others may see that as a 'cheapest price' insurer.... cant win sadly!

mikey72

dacouch wrote: »

There are plenty of broker only Insurers and their business model is normally to offer cheaper premiums to existing customers.

The original direct companies eg Preferred and Direct Line originally worked on the same basis as otherwise they would simply lose their customers at renewal. An existing customer is a known risk to an insurer as they can see their true claims history. An Insurer typically lost money or broke even on the first year due to the setting up costs but made money when the policy was renewed as the admin costs were vastly reduced.

Motor Insurance has probably the lowest profit margin for an Insurer out of any type of policy. The business plan of companies such as DL was to build a client base of motor clients and then use the brand and client list to sell them more profitable policies such as home insurance and life insurance etc.

The advent of comparison sites has meant that many Insurers have started offering cheaper prices to new customers than existing customers as to gain business they have to offer the cheapest quote. Which is often achieved by the existing customers subsidising the new customers premiums and / or reducing the levels of cover and / or offering the cover at a loss to gain the customer. Their hope again is often to cross sell the more profitable covers.

The comparison sites have also contributed to the bringing in of admin fees and inflated legal cover premiums etc.

You keep saying it, but it doesn't make it believable.
The facts, references, and figures I have posted through all these threads contradict you.
Some references, or figures, rather than hearsay would be nice.
Maybe we should invite MSE members who repeatedly get lower premiums and who use brokers to post, and leave it there.

adamc260

mikey72 wrote: »

You keep saying it, but it doesn't make it believable.
The facts, references, and figures I have posted through all these threads contradict you.
Some references, or figures, rather than hearsay would be nice.
Maybe we should invite MSE members who repeatedly get lower premiums and who use brokers to post, and leave it there.

eh??? (darn this minimum 10 character thing!)

dacouch

mikey72 wrote: »

You keep saying it, but it doesn't make it believable.
The facts, references, and figures I have posted through all these threads contradict you.
Some references, or figures, rather than hearsay would be nice.
Maybe we should invite MSE members who repeatedly get lower premiums and who use brokers to post, and leave it there.

You have quoted no facts or figures that contradict what I said about how the Insurance market used to operate. What I explained is how the overall market used to operate.

The figures you quote are from Admiral who are fairly unique in the market in that they have always made a healthy profit. They have consistently been one of the most profitable Insurers and have a very good underwriting profit. They entered the market at a very good time and used fairly revolutionary new methods.

mikey72

I'm leaving it.
I am discussing how prices are increasing now, not what happened in the good old days, and why you think that should be the way it should still be.
Even you admit Admiral have a good business model, and instead of embracing it, you are actually saying they are the exception.
I have quoted far more than Admiral as returning profits, but you choose not to provide any reference for the "losses"

Nice to have agreement from an “insider” on Admiral though, maybe raskazz will have to agree now.

dacouch wrote: »

…….. They (Admiral) have consistently been one of the most profitable Insurers and have a very good underwriting profit…

raskazz wrote: »

……… They (Admiral) are making hardly any money on motor insurance underwriting.....

gordikin

I'd really love raskazz to tell us the 2....+?

Quote

If the new business price were cheaper than the existing price, a decent broker would use the new business price.