Take the first step in understanding your credit proposition

Credit is going to become a big issue for motor insurers in 2020, and beyond. In a volatile market and against a backdrop of recession, more people are going to need to spread out the cost of large insurance premiums. And that means all insurers and brokers need to be asking themselves some hard credit questions.

 Those include which of your current and prospective customers are looking for credit - or will be looking for it, how often you’re offering it, how much you’re charging them, how they’re paying, what criteria you’re using to assess their risk – and if in applying it you’re discriminating or even increasing their vulnerability. What are your competitors doing? How are you going to balance the need to assess credit worthiness against the need to support vulnerable customers? What is the true cost of credit – not just to your customers but your brand, too?
The first step is to understand your credit proposition, how it fits into your pricing strategy, and where you sit in the market. This is your chance to make sure your credit strategy is credible for the next stage of the livingwith-COVID world. It’s also your chance to make sure it does your business credit, too. That’s why we’ve put together this report, and we hope it will help not just providers, but in turn the customers turning to them to spread payments into more manageable instalments.