Citizens Advice claims loyalty penalty makes up 100% of home insurers profits

Insurance Business America | April 10, 2019

Citizens Advice claims loyalty penalty makes up 100% of home insurers profits
National charity Citizens Advice, based on its research, has made a bold assertion – that UK home insurance providers make 100% of their profits from longstanding customers with policies of at least six years. According to Citizens Advice’s study, loyal policyholders are paying an average annual premium of £325 for their sixth year of insurance while new customers shell out £172. The price for existing policyholders, noted the charity, moves up to £238, £267, £290, £304, and £325 for the succeeding years. “It is appalling that home insurance companies are making all their profit from exploiting loyal customers,” stated Citizens Advice chief executive Gillian Guy. “What makes this worse is that vulnerable people are likely to be the most loyal to their provider. “Since we submitted our super-complaint about the loyalty penalty, some companies have rightly promised to treat their customers better. Yet many more are still choosing to make their profits off their most loyal and vulnerable consumers.” The charity estimates that 3.75 million policies have been held for a minimum of 11 years, and that 71% of these customers are potentially vulnerable.

Spotlight

Lancaster insurance agency, Martin Insurance, shares an infographic on the most expensive home insurance claims.

Spotlight

Lancaster insurance agency, Martin Insurance, shares an infographic on the most expensive home insurance claims.

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