Overcharging by insurers – a cast iron opportunity for advisers to review client needs and build a growing annual income
Did you know that last year, Citizens Advice claimed that home insurance companies were overcharging up to 13 million households in the UK simply for renewing their existing policy?
It also found that older people are especially vulnerable to these additional costs as 40% of people over 65 have had their home insurance policy for over five years.
This means they could be paying 70% more than a new customer would for the same policy and at the same time paying on average an extra £110 a year more than the cheapest buildings and contents insurance policy available.
In addition to this, just last week the FCA have said they will study the scale of the issue, who it affects and possible solutions after finding “hidden” discrimination pricing between customers of home and car insurance policies.
It is also claimed that customers who stick with the same supplier for a variety of household services are losing a total of £4.1bn a year.
A review of every new and existing customer’s policies could yield a growing income stream as well as save your customers money.
Home insurance is always worth discussing with every client to ensure they are covered but to also ensure they have the right cover in place and they are not overpaying for that cover.
Talk to us today to find out how we can help you with your GI business.
This article was produced in partnership with Assurant.
Assurant Intermediary Ltd offers Mortgage Advisers in the UK a quoting platform (Quoforma+) to source home insurance products from across the market.
Part of Assurant (NYSE:AIZ), a global provider of risk management solutions, helping protect where people live and the goods they buy.
With approximately $32 billion in assets as of December 31, 2017 and $6 billion in 2017 revenue, Assurant operates in 16 countries, while its Assurant Foundation works to support and improve communities.