Experts caution insurers on loophole in monthly coverage schemes

Experts have warned insurers about the need to be more transparent about flexible and on-demand products that policyholders pay for on a monthly basis. According to The Telegraph, monthly insurance policies are growing in popularity, with around a fifth of young people having flexible car insurance. However, many policyholders on flexible monthly payment schemes may be unaware that, unlike traditional 12-month policies, insurers are not required to inform them when they renew. “When we look at the future of insurance, our research shows that the traditional 12-month policy is set to become increasingly unpopular as we move down through the generations, with millennials and Gen Z least likely to purchase this type of insurance,” Ian Hughes, chief executive officer at research firm Consumer Intelligence, told The Telegraph.