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The proposals set out by the FCA ’ s final consultation of GI pricing practices mean that existing customers will never pay more for their insurance than new customers .
Martin Schultheiss
Chief Commercial Officer Uinsure
... in 2021 advisers can make headway in a fairer market and offer a real differential that delivers on the outcomes that the FCA are looking for ...
It ’ s an absolute move to fairness , transparency and better outcomes for consumers but what will these new rules mean for you as advisers ?
The FCA ’ s final rules on GI pricing practices are soon expected to put an end to artificially discounted home insurance premiums , which has often left people who are time poor and often vulnerable paying more than they should at renewal .
The effective ban on ‘ price walking ’ will inevitably create a more level pricing landscape that has suffered disparity in the intermediary market , particularly since the rise of online price comparison sites . The significance of this move creates a first-time opportunity for advisers to provide home insurance advice with far less price sensitivity than what has emerged since the rise of price comparison websites and aggregators .
Now that heavily discounted first-year pricing will be removed from the conversation , in 2021 advisers can make headway in a fairer market and offer a real differential that delivers on the outcomes that the FCA are looking for ; ensuring that customers are informed to make decisions and understand crucial product features such as policy coverage as part and parcel of an overall advised service .
With the GI pricing rules in place , it ’ s also likely that existing customers may become less inclined to switch providers , with the knowledge that their renewal premium reflects the price they would receive as a new customer . In addition to our advisers being confident that Uinsure ’ s pricing strategy already reflects fair value for its customers , we must also recognise the significant opportunity that this direction of travel presents for intermediaries to take hold of home insurance advice .
With over 50 % of online insurance sold via aggregators today – advisers can know that Uinsure has always been committed to delivering fair and sustainable pricing . We are proud to say that we have never adopted the practice of ‘ price walking ’, so even before the new rules come into effect , you can give confidence to your customers that they will be offered the cheapest new business price at renewal , compared across our market-leading insurer panel .
Uinsure has launched a new service that searches and compares renewal premiums from our panel of leading UK insurers , including AXA , Ageas , LV = Broker , RSA and UK General . If another insurer is cheaper , Uinsure will offer your customers the opportunity to switch to that insurer ’ s new business price . This means that your customers don ’ t need to remember their renewal date to maintain a competitive premium and there are no changes to the policy cover , so the product they receive is always 5 Star Defaqto and Moneyfacts rated .
Advisory firms are a trusted voice to loyal and longstanding customers and certainly best positioned to make sure that their Home Insurance needs are covered and up to date . Here at Uinsure our intermediary proposition is strongly placed to support your customers , having never discounted first year premiums and offering a digital-led service that automatically keeps an eye on renewal dates to deliver the most competitive premiums .
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If you ’ d like more information , please get in touch with us at www . uinsure . co . uk , email enquiries @ uinsure . co . uk or call 0344 844 3844 .