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You will have seen that on 28^th May 2021 the FCA published its paper on pricing rules in the GI Market. This follows several years’ work from the regulator to address the harms suffered by loyal customers of home and motor insurance providers.

New ruling

It has long been the case that regulated firms have a duty to treat their customers fairly, however the work performed by the regulator has shown that in many cases this has not been delivered in the GI space. The most prominent change that the FCA brings in is that firms will no longer be able to slash new business premiums in order to attract new customers, only to penalise them in subsequent years with hugely inflated prices which bear little resemblance to the actual cost of providing the policy. This unfair profiteering has become known as ‘Price Walking’ and it will be banned from the start of 2022, removing the need for customers to outwit insurance providers and move their polices year on year in order to get a fair deal.

As we know, price is only part of the story and there is a raft of new rules on product governance which take effect from September 2021, meaning firms must test the products they provide for “value” on a regular basis.

Key considerations

There are some key considerations for distributors and firms as a result of the FCA’s recent moves. This will include having a clear understanding of GI provider panels value proposition and whether or not these providers have undertaken the practice of price walking your customers, whom will probably have paid a financial penalty for their loyalty. In the case of legacy back books there is also a strong likelihood that some customers will be holding policies that are outdated, have not benefited from product development and would not pass any of the tests that the FCA has introduced.

The ultimate aim for the regulator is to create consistent pricing; this may well mean the end of cheap deals in the first year, but it will bring about a more sustainable ongoing insurance bill for the customer who will have a better idea how much their home insurance costs year on year.

What this means for advisers

For advisory firms, the new rules will mean that, as price will no longer be the sole representation of value, the profession can lead the insurance conversation without the traditional sensitivity on first-year prices. It’s a significant opportunity to reclaim intermediary market share from price comparison sites which had become more successful when new business pricing competition became artificially more aggressive.

Most are familiar now with the FCA’s intention to ban the practice of price walking for general insurance but, with the rules still in consultation, should advisory firms sit back and wait for the proposed ban to come into effect, or be acting with more urgency?

The FCA’s proposal to prevent insurers from price walking will mean that every customer will be offered a new business price at renewal. This would outlaw a practice which has helped providers pocket an extra £1.2bn in fees from six million policyholders it identified in October 2019, as paying high or very high premiums.

Price has always been the dominant factor in any insurance purchase decision and although a low price doesn’t necessarily translate to good value, it’s easy to assume when comparing like for like cover across multiple insurance providers, that the cheapest price may seem like the best option.

However, in the interim of any regulation, Boards and Senior Managers should take some time to consider their customers best interests in relation to how they are comparing these policies. The reality is that what appears to be the cheapest first-year price, may ultimately become a bad deal if not calculated over the lifetime of the policy.

Uinsure has never price walked. This strategy has been under pressure given the nature of a very competitive market, but our practice and offering has remained consistent since our inception in 2007.

It’s an ethical standpoint that we believe is fairer and more transparent for customers, while ensuring a better outcome. Of course, refusing to price walk has occasionally meant that our first-year prices might be slightly higher than those of our competitors, but our fair pricing strategy has meant that prices are consistent and honest with no hidden fees and, therefore, representing fairer value of the lifetime of the policy.

As we move forward, our strategy will remain the same for what we believe is the ultimate benefit of the end customer and this will ensure all of our customers are treated fairly, in return for the trust they put in us.

By Lauren Bagley

The property market is becoming increasingly diverse, both in respect of home and landlord types. Homeowners and landlords alike are becoming more adventurous with their own developments and renovations meaning an increasing number of insurance queries are falling out of what is deemed to be ‘standard’.

There is also, too, disparity between how advisers perceive the landscape to be, what is reality and how advisers can actually serve these insurance risks.

With the current technology capabilities of price comparison websites, there are increasing numbers of property risks that can’t be protected instantly via an online search for insurance, such as unoccupied properties, holiday homes and different methods of construction.

And then for landlords, with a massive 85% of private rental properties in the UK being part of a portfolio, these clients are seeking ways to reduce their insurance spend and consolidate policies, meaning opportunities for advisers to support with property portfolio insurance are growing, too.

Such is the advance in intermediary technology, which far exceeds what is available directly to the consumer, these are all client needs that can be served by advisers who can provide valuable cover for multiple properties, non-standard, commercial lets and blocks of flats through the familiar Uinsure Adviser Platform.

The same basic principles to generating quotes for clients apply and, fortunately, intermediary technology now exists that means with simple training, advisers can get both the confidence and know-how to operate in these spaces.

Traditionally, these journeys have been very time-consuming but by integrating them into our platform, advisers are able to apply in as little as 90 seconds with simplified, intuitive quote journeys that are reflective of Uinsure’s market-leading mainstream home and BTL experiences.

The housing and property market won’t stand still and tech that supports the insurance industry will need to undergo ongoing evolution to ensure it keeps progressing with the times. The new ‘AirBnB’ may be just around the corner and by easily expanding areas of expertise, firms from across the UK have the very real opportunity to expand their income streams as client needs continue to evolve.

Those that do make this small leap into the new give their businesses opportunity for growth and longevity in what is an ever-changing market.

Uinsure has been awarded the highest possible 5* Defaqto rating for the ninth consecutive year.

Throughout our existence, we have always placed massive emphasis on the quality of our customers’ experiences along with making sure they have the most comprehensive cover available.

Our Home Insurance product has been given Defaqto’s highest possible rating since 2014, while our BTL / Landlord Insurance product has also been awarded 5 stars since 2015.

The Defaqto 5* rating is an integral measure in order for us to make sure advisers and their clients both have the confidence of knowing, should the unfortunate happen and a claim is needed, they will be properly covered by a comprehensive policy.

The rating is judged by Defaqto, an independent body, which considers all of the key features and benefits on offer, as well as any optional add-ons or extras, before giving an overall rating.

The aim of the service is to ultimately give consumers an impartial and easy-to-understand assessment of an insurance product to help them weigh up benefits before purchasing.

The mental health and wellbeing of professionals in our industry is of vital importance and, as a result, at Uinsure we’ve joined the Mortgage Industry Mental Health Charter (MIMHC), which provides guidance, tips and a framework for businesses like ours to follow to help make sure our team are fully supported.

By joining the Charter, Uinsure has signified its commitment to develop mental health awareness among its employees but good mental health and support goes above giving people a platform to air their concerns. A healthy work life balance and good working conditions are fundamental in helping people truly enjoy their time at work and opportunities for personal development are key in encouraging people to grow.

The Charter also encourages open conversations about mental health so we thought we’d kick things off with some top tips on how to manage your own wellbeing from two of our own experts; HR Manager, Paul Fletcher, who is also our representative for Mental Health, and Katie Warren, one of our Business Development Managers who looks after South West and West Midlands.

Be available to both talk and listen

Conversations can change lives and a simple ‘are you OK?’ can encourage people to open up if they’re struggling. Spend time with people you feel comfortable talking to about your feelings, too.

Encourage communication

From checking in with your team-mates and keeping things collaborative. Appreciations and gratitude for jobs well done is great for motivation and boosting your own and others self esteem.

Take breaks

Breaks can improve productivity and overall work performance. Reclaim that lunch break to help you de-stress and re-charge. This could be an afternoon walk or lunch with your teammates.

Keep active and do something for yourself

Find time for your favourite hobbies. Exercise naturally releases endorphins – a walk may be better for you than having a nap in boosting your energy levels and fighting fatigue. Learning when to take a time out for some ‘me time’ so you can relax a touch is equally important.

Be in the present

Take time to be aware of yourself in the moment to gain a better perspective.

Get good sleep

It makes a massive difference to how we feel mentally and physically. The average adult needs 7-9 hours of sleep per day and if you’re not getting enough you may feel drowsy, irritable, less productive and it can even affect your skin.