What defines a "good" insurer?

prettyandfluffy

This a serious, open question.  I've seen several posts where it's been suggested that people should use a good/reputable/ethical insurer, but how does the average person (me) know? Is there a professional membership or accreditation etc that you should look for?

Just to clarify, I'm not looking for recommendations for specific insurers, I want to know what to look for when selecting an insurer that will tell me that I have made a good choice.

DullGreyGuy

First of all... how are you defining good? For many people, at least according to reviews they leave, a good insurer is one with cheap prices. For some others it may be a question of what they invest the monies into and their ESG policies.

Secondly, are you separating policy and insurer? A cheap and cheerful company can be "good" but by definition their products are going to be more basic and so a claim could be settled fast and professionally but you don't get what you hoped for because you bought a budget policy that doesn't cover Trace and Access or Matching Sets.

Finally, how do you consider the big insurance groups which may have the budget products with restricted services but also the MNW policies which cover all eventualities with 24/7 agents waiting for you to call. 

Ultimately a lot comes down to point 1, what your expectations are and a bit of a luck of the draw as claims at least is still a fairly human business and you can get a good one or a bad one in any company. 

prettyandfluffy

Well I'm interested to know what you think, as you are knowledgeable on the subject of insurance.  For me, cheap is no good if they don't pay out, can't be contacted etc.  Equally I don't want to pay more for a particular name and then find out that they are no better than their cheaper competitors.

ETA What makes you choose insurer B over insurer A?

DullGreyGuy

I personally think that the policy wording is the most critical thing as it's what your expectation should be. You need to match that to your needs... no point moaning that they will only replace the damaged dining chair and it won't match the table and other 9 chairs when you bought a policy that doest cover matching sets.

On the insurer side, and taking into that definition also MGAs and certain other intermediaries, there are brands I like, ones I will avoid. Personally don't like offshore insurers so that rules out Admiral Home for me but Admiral Motor is still UK based and is cheap and cheerful but my experience of their service has been good (just be aware of their non-standard position on optional extras).

Our Home insurer has been the same for years because there is only one mainstream insurer that offers us sensible prices and going to those aimed higher in the market (Hiscox, NFU etc) the price more than doubles. Motor was always whoever is cheapest bar a few brokers I wouldn't touch. Travel is packaged with out bank, don't have Pet and long term insurances are a totally different kettle of fish.

NFU I've been disappointed with their slightly "computer says no" type approach to personal possessions... yes she owns several handbags that have to be declared based on their relatively low limit but she's never going to go out with all of them at the same time but they cannot factor that into the equation.  

Annemos

I would say: make sure the underlying insurer is a member of the ABI (Assoc of British Insurers.)

Their members tend to try and do the right thing by customers. For example, in the case of Subsidence. 

Here is the link so you can check if yours is a member of the ABI:  

https://www.abi.org.uk/about-the-abi/abi-members/