In the last 7 days a major UK insurer has confirmed they will be abolishing “teaser” deals to their new home insurance customers. At the same time they have exposed a system that has punished loyalty and rewarded new customers that is endemic in the insurance industry.
The theory of “teaser” rates are that new clients are enticed with discounted premiums that are generally unsustainable and increase year on year. However, insurers also know that many clients (up to 70%) do not shop around every year so the saving made in the first year is lost and often the client pays more with that particular insurer over the course of a few years.
Of course, it is welcoming that an insurer is seeking to offer stable insurance premiums which are fixed if the client does not claim, but this is one insurer on one policy type so far.
At Sharrocks we work hard with insurers to avoid unnecessary premium increases and check the insurance market each and every year to ensure we offer our clients stability and savings with reliable insurers. This is not a new marketing ploy or gimmick this is something we have been doing each and every year for the last 45 years.
So next time you receive a discounted premium to win your business think are you being teased or are you getting the real deal?