Insurers’ unfair policy is failing loyal customers
ONCE again it looks as if insurers are ignoring their existing customers in the hunt for new business.
These companies are being taken to task by the Association of British Insurers, who reckon that it is unfair that loyal customers should have to suffer – and be hundreds of pounds out of pocket in many cases – simply because firms want to offer their best deals to new customers.
It’s right, of course, that insurers make their products as competitive as possible to attract customers but they shouldn’t be doing this at the expense of those who have been with them for years.
There is an argument that says we should shop around more – and it is perhaps the case that insurers are preying on our lethargy.
But there’s a reason why some people don’t want to shop around.
It’s not always because they can’t be bothered to look around the market. Sometimes it’s because they actually like the insurers they are using.
Perhaps customers have a policy that covers exactly the things they have in their house, or that gives good cover for sports equipment or musical instruments when the policyholder is travelling.
It might be that a particular insurer has a really good claims process and customers are happy knowing that any claims will be resolved speedily and efficiently.
It’s all the more galling in a situation like this when these satisfied customers see their premiums shoot up every year while new customers come in and bag all of the discounts.
It’s even been reported that some customers are cancelling existing policies at renewal and taking out a brand-new policy with the same company just to qualify for a discount.
That shouldn’t be necessary and sends out a poor signal to consumers about the lack of respect that companies have for their business.