As you read this short piece, many of your clients will have been contacted by their household insurer offering renewal terms for their policy.
Unless they have had occasion to update their particulars or make a claim, it’s unlikely that many will have consulted their insurance documents after filing them away. It’s also unlikely that many will remember the premium off the top of their head. As we all know that price is a key factor for many when buying household insurance, surely insurers should state this information alongside their renewal offer?
Sadly, few insurers remind customers how much they paid the previous year. Why? The truth is that most providers prefer to keep their customers in the dark as to how much their insurance bill is going up by in an economy that is pretty much experiencing zero inflation. The auto-renewal method adopted by so many insurers does mean, in theory, that there is never a gap in cover. Well that’s all well and good but it could also mean that millions of households around the country may well be paying over the odds particularly if they haven’t been reminded about what they paid last time around.
Some insurers have taken the bull by the horns and are starting to tell their customers how much they paid for their insurance premium in the previous year when sending out renewal notices, which should make it easier for customers to compare cover and prices more easily. The Financial Conduct Authority is also looking into the issue of auto-renewal, which has been identified as an area where competition is weak and consumers are poorly served.
Intermediaries are in a tremendous position to help their clients avoid paying too much for their household cover. Rather than waiting for the insurer to contact your client, you can get in touch reminding them that their policy is coming up for renewal and how much they paid before as well provide them with an overview of the options you have found for them based on their previous circumstances. It gives you an opportunity to demonstrate the value you can add and if things have changed for the client, you can work with your GI provider to source new options.
Brian Coulton, Head of Sales
Proactive Renewal Management with The Source
At The Source, we support your renewal retention by offering our proactive renewal management as standard. We automatically offer a choice of renewal options in your clients renewal pack for your based on their risk profile. This is followed up by a personalised call from our team to run through the options. We are
We regularly secure renewal rates of over 80% meaning a consistent income stream for you. The best part is you keep all the commission at the same rate you placed the case. Plus with the Source Commission Guarantee, you'll keep that trail income for the life of the policy, even if you retire or leave the industry.
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