CAN THE FCA STOP INSURANCE PRICING’S VICIOUS CIRCLE?

IAN HUGHES | November 7, 2018

article image
Launching its market study last week, the FCA voiced concerns that “general insurance pricing practices have the potential to cause harm to consumers, particularly those who are vulnerable.”  At Consumer Intelligence, we’ve been saying for a long time that there is no easy market solution for what has unfortunately become a common industry practice.  The regulatory action could be the thing that fixes it. Because hate it as much as many insurers do, there’s a commercial disincentive for insurance brands to give up on cheaper rates for new business.  Dual pricing is not a deliberate and calculated attempt to rip off loyal customers. It’s often a by-product of having introductory rates in a market with high customer churn. It’s the perfect vicious circle.

Spotlight

CopperPoint Insurance Companies

Founded in 1925, CopperPoint Insurance Companies are dedicated to protecting and empowering conscientious business owners. Our vision is to be a top-tier regional commercial insurance company and the preferred partner for business owners, agents and brokers in every community we serve.

OTHER ARTICLES

Automation for the Future of Insurance: Enabling the Ecosystem

Article | February 17, 2020

During InsurTech Connect 2019, the world’s largest gathering for the insurance industry, I had the opportunity to meet and talk about the future of insurance with executives, thought leaders, analysts, consultants, and tech providers. In an interesting discussion with Seth Rachlin, chief innovation officer of Insurance at Capgemini, he discussed three trends that he envisions driving the “future of insurance.”

Read More

Do Entrepreneurs Need Business Insurance?

Article | February 17, 2020

Being an entrepreneur is no piece of cake. You are going out on your own, venturing into a new industry and the future is unknown. Many factors will contribute to whether your new business will be a success or not. One of those factors is whether you purchase comprehensive business insurance from the get-go. Below, we will discuss what types of business insurance you should consider as an entrepreneur who is starting your own company.

Read More

Does Your Business Interruption Insurance Cover COVID-19-Related Losses? Are You Sure?

Article | February 17, 2020

The COVID-19 coronavirus emergency has everyone scared, and many are imagining the worst. For business owners and managers, there is a fear that what you, your employees, and your customers or clients have built will be lost – through no fault of your own. And we don’t know how long the financial impact of the pandemic will continue.

Read More

Will COVID-19 Disrupt the InsurTech Movement?

Article | February 17, 2020

If there is one thing that we have all learned with the spread of COVID-19, it is that there is virtually no industry that is immune to its impact. The global pandemic is disrupting the daily lives of individuals, the operations of businesses, the activities of governments, and even the approach of cherished institutions like museums, universities, and religious organizations. The P&C insurance industry, like many others, is reeling from the implications of the virus. Amid the rapid changes that are taking place, it is important to assess the impact of COVID-19 on the InsurTech movement. After all, InsurTech has always been touted as the ultimate disruptor of the insurance industry. But, might COVID-19 prove to be a disruptor to InsurTech?

Read More

Spotlight

CopperPoint Insurance Companies

Founded in 1925, CopperPoint Insurance Companies are dedicated to protecting and empowering conscientious business owners. Our vision is to be a top-tier regional commercial insurance company and the preferred partner for business owners, agents and brokers in every community we serve.

Events