Insurers should do more to help customers save
THE CONSUMER body Which? has called on insurers to do more to help customers save money when they renew their policies.
The group found that consumers would like more information on pricing when deciding which policy to buy, including details about the price they have been paying for the previous year’s insurance.
Which? executive director, Richard Lloyd said: “Our research shows it pays to shop around when renewing your insurance, and that’s good for all consumers too as it helps keep the market competitive. But it’s not easy to find a good deal if you don’t know what you paid last year.”
He added that Which? is calling on insurers to “be more upfront when they send out renewal notices by showing customers the premium they paid last year and explaining any differences.”
Huw Evans, director of policy at the Association of British Insurers said many customers already shop around and use comparison websites to get a competitive price.
“But renewal should never be just about price; getting the right cover for your needs is vital,” he added. “We look forward to continuing to discuss with Which? and other consumer groups how best to help customers make informed choices about the best cover for them.”
The insurance industry has come under pressure from politicians in the last couple of weeks over concerns about the amount of time taken to deal with claims for flooded homes. The industry hit back yesterday and warned that Labour leader Ed Miliband’s call for a guarantee on how long claims will take to process was an impossible ask.
Some insurers, especially those that deal with motoring policies, have warned that premiums may go up this year to compensate for large discounts handed out last year.