13/11/2020
This is Insurance Company-bashing week and this is the first of two articles on the subject.
If I change to new insurers this year they will give me a special low introductory price. If I am foolish enough to stay with them for a second year, I will incur a substantial price rise. So what does this tell me about their business model? Disloyalty is rewarded; loyalty is punished.
This model is universal across the industry and it makes no sense. In virtually every other business, efforts are made to hang on to existing customers. It reduces admin costs and increases the likelihood of selling additional products within the range. Yet the entire insurance industry seems hell-bent on turning over its entire customer base annually. Can anyone offer a justification for this lunacy?
