MSE News: Insurers could be forced to include last year's premiums in renewals

chris_m

OnanTheBarbarian wrote: »

This goes directly against the tactics they mainly all employ, namely cheap as chips premium as a new punter and then as savage 30%+ hike in renewal. Such new measures would obviously not be happening if they were not all doing this.

I must be using the wrong companies - I cannot recall EVER being hit with a "savage 30%+ hike" on renewal from any of my insurance companies, not on first renewal nor on subsequent ones.

mcjordi

i know pretty much to the penny what ive paid on every car ive owned.

muppet610

Hi I work for a brokerage which has been going since 1958 and some of our customers can remember their premiums since they insured their first cars.

Insurance premiums tend to go in cycles and up to last year premiums were going down (something our customers appreciated) but eventually the price wars stop and premiums go up again.

Believe me our customer's know whether their premiums have changed (and are not shy about telling us) but they trust us enough to know that we will always rebroke the risk to meets their needs and if an insurer's new business price is cheaper, we will put the insured back with them.

What concerns me is that some clients forget they have changed their policy in some way (either changing their vehicles or drivers) or have put a claim in and in these cases last year's premium will be irrelevant and quoting last year's premium would not be helpful but if anything it will be confusing. What would be more useful would be if the insurer were to confirm what the premium would have been last year if it was on the same basis. Then clients could truly see if their premiums have changed and we as brokers can have a chance to explain why the premium has changed and why.

Whilst I understand that the FCA is trying to make things more transparent, it usually just results in more paperwork that most people don't want or read (have you noticed how much paperwork you receive with every renewal or adjustment - according to the FCA this is for your benefit).

Nb - many apologies for any spelling errors but my tablet seems have a mind of its own).