Once a quarter the market gets an update on what is happening with premiums. Whether you look at our own Consumer Intelligence insurance index or the AA’s British Insurance Premium index, one thing holds true, the price of motor insurance is rising.
One of the explanations for the rise is an increasing number of customers shopping around at renewal time, reducing the rationale for offering loss-making introductory offers.
The shopping around figure is one Consumer Intelligence can quantify, and it’s a big one.
Our Insurance Behaviour Tracker shows the number of shoppers who switch insurer has risen from 36.2% to 41.8% in a year. That’s an extra 627,000 motorists who will change insurance this year compared to last year, slightly more than the population of Cornwall (549,000) or the population of Sheffield (569,00).
Our research showed average price rises for customers renewing their policies has doubled in the last year to £22 meaning the industry continues to financially reward promiscuity.
We can also tell which brands have the best and worst retention rates and whose customers are moving where.
The threats and opportunities of shopping around looks set to intensify when the FCA’s requirement to publish last year’s premium on renewal letters becomes reality and more consumers realise that their loyalty is met with price hikes.
Improve profits and tighten margins
To be able to optimise your pricing you need to be able to see how you are competing on all the major price comparison websites (PCW's). The multi aggregator pricing toolkit will improve your sales and profit by giving you a broad understanding of your performance across the market. Selling too cheaply can be as dangerous as not being competitive and with this toolkit you will find out how you can improve profit and where you might need to tighten margins to increase policy count.
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