Renewal Notice Analysis Capability
Renewal notices are a key trigger in starting the shopping journey for many consumers. Since 1st April 2017 the FCA have required insurers to include last years price as a comparison against the new renewal premium. The FCA have contacted a number of insurers to advise them to ‘improve’ their renewal notices. There are a set of rules and guidelines that insurers must follow in relation to renewal invitations within Chapter 6 of the Insurance Conduct of Business (ICOBS) rulebook.
A number of insurers will be reviewing their renewal notices and asking how theirs benchmark against competitor’s interpretation of ICOBS chapter 6. An example is 'Company X' who have asked Consumer Intelligence to collect current and historical renewal notices and to provide an independent and objective analysis of the approach and content in respect of ICOBS chapter 6.
We collected renewal notices from our Viewsbank community across 15 brands in Home Insurance and developed an analytical framework for the comparison of renewal notices across brands. We have conducted primary research to create a scoring mechanism for an assessment of renewals based on the factors most important to consumers. Following a review of 15 brands renewal invitations and schedules, including a combination of letters and emails (where examples exist) we have created a 10 point comparison criteria which includes:
We have also conducted primary research amongst 300 motor and home Viewsbank community members
By working with our client we have significantly improved their renewal notices to make the most of the renewal opportunity with cross-sell and up-sell messaging whilst producing a report to ensure they comply to FCA guidelines. We will continue to do the analysis for our client on a rolling 6 month basis, delivering a workshop and report that can be used across the business.
The solution: Renewal Notice Benchmarking
What if you could improve your retention rates and customer engagement levels whilst complying with FCA guidelines all at the same time?
As you know, since 1st April 2017 the FCA has been enforcing its ICOBS guidelines, particularly chapter 6 which states insurers are required to include last year's price as a comparison against the new renewal premium.
Insurers that have fallen foul of this guideline have had lengthy and time-consuming consultations to fix problems they could have previously solved in a cost-efficient but also profit-enhancing way.
At Consumer Intelligence we have done the hard work for you, collecting hundreds of renewal notices and conducting market representative primary research to develop out 10 point methodology in analysing your renewal notices, not only from a compliance perspective but also for commercial gain. Avoid a similar outcome and turn compliance into an opportunity by speaking to Consumer Intelligence now about what you can do to improve your renewal notices and drive your market share by analysing real consumer data.
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