Loyalty will always get my thanks

AFEW thank yous are the order of the day. Plus the odd tickingoff. First, I cannot thank enough those readers who have taken time out from their busy lives to lend their support to our investigation into the malfunctioning insurance market – and to rail against the industry’s refusal to reward loyalty.

You contacted me in your hundreds and although I have spoken to a number of you in recent days, every letter and email has been an eye-opener and much appreciated.

The evidence you have presented has been overwhelming. Most insurance companies are currently not PERSONAL FINANCE EDITOR interested in building long-term relationships with customers. They are more intent on chasing new business.

The pursuit of the new is both fine and understandable but not when it is financed by the exploitation of those who do not want to go through the rigmarole – for whatever reason – of shopping around every time their cover comes up for renewal.

Sadly, that is where we are at the moment, as highlighted by our latest investigation above. It seems as if insurance companies are quite happy to test how much more customers are willing to pay for their cover at renewal.

Those who do not question the increase get ripped off.

Those who challenge invariably – but not always – are offered a cheaper quote.

As you have told me, it is an unacceptable state of affairs.

Secondly, I would like to thank Sue Lewis, the voice of the consumer within regulatory circles, for backing our work.

Let us hope that some of her ideas around giving customers better information at renewal time are acted upon by the Financial Conduct Authority.

It would also represent a big step forward, as Lewis says, if insurance companies were required to give all customers a duty of care rather than exploit their inertia.

Finally, on the thank you front, a tentative pat on the back for those insurance companies which were prepared to admit to The Mail on Sunday that the current system discriminates against loyalty, is not fit for purpose – and needs to be overhauled.

A bit rich of them to say this, I hear you say, given they are quite willing to fleece long-standing customers.

But let’s wish their words are more than just playing to the gallery – and prompt an overhaul of the industry.

Maybe Aviva’s move later this

year to test a reward scheme for loyal customers will provide the touchpaper for change industry-wide (insurers are like lemmings – one makes a move and they all follow suit). But then, maybe not.

As for the tickings-off, it seems some insurers prefer to go to ground when the going gets tough and we are criticising them, rather than heaping praise at their door.

AA and Hastings Direct were among those companies asked to explain their treatment of specific loyal customers – and to comment on the dysfunctional market they are part of.

They did not comment. How damning.