churchill - beware automatic renewal

dunstonh

Mr_Man_Full_of_Love wrote: »

Do the experts in this field think that the 50% first year discount with people constantly changing insurers is a sustainable business model? Or will it at some point come full circle and companies will start rewarding loyalty instead?

The model shouldnt be sustainable but has been able to be due to cross subsidy and cross sales.

There has been a recent shift with higher risk individuals getting significant increases whilst lower risk are not. That may help sustain it for longer. (not ideal for high risk individuals but great for low risk)

There are companies that are still pricing on sustainable prices and those that are pricing with heavy year one discounting. I think that will remain the case with insurers taking it in turn to buy business at different times.