Another home insurance renewal rant.

[Bonefish Blues]

For my last car insurance I tried the local branch of Swintons (I assume they are what you mean by brokers?) but the best they could offer was nearly double the Hastings quote.

They sound rubbish

 

[srw]

It is crazy, and after years of living with a system where customer loyalty was rewarded, it is not easy to get your mind around a system in which loyalty costs you dearly.
Things have changed, and the customer mindset must change too.

I started working in insurance in 1996. That is nearly 23 years ago. It was very clear in public that loyalty wasn't rewarded then.

How long does a mindset need to change?!

 

[snorri]

I started working in insurance in 1996. That is nearly 23 years ago. It was very clear in public that loyalty wasn't rewarded then. How long does a mindset need to change?!

Time flies.

 

[Deleted member 26715]

I started working in insurance in 1996. That is nearly 23 years ago. It was very clear in public that loyalty wasn't rewarded then!

I blame Thatcher! when insurance companies were insurance companies I think there was an element of loyalty, but once bankers (why do I always want to spell that with a W) got involved & the only target was the bottom line, loyalty went out the window.

 

[srw]

I blame Thatcher! when insurance companies were insurance companies I think there was an element of loyalty, but once bankers (why do I always want to spell that with a W) got involved & the only target was the bottom line, loyalty went out the window.

Perhaps you would like to explain how bankers have been involved in the insurance industry? I confess I can't quite see it. But then I only had 21 years helping to run an insurance company.

 

[Deleted member 26715]

Perhaps you would like to explain how bankers have been involved in the insurance industry? I confess I can't quite see it. But then I only had 21 years helping to run an insurance company.

Seriously no banks offer insurance?

 

[Dave7]

but once bankers (why do I always want to spell that with a W) .

That would be silly
bwankers isnt a real word .
But I really do agree with you.

 

[srw]

Seriously no banks offer insurance?

Lloyds is the only major banking group with an insurance company in their group. The Co-op also has both a bank (just) and an insurance company. The other banks sell insurance - but they act as brokers and are pretty small in the market.

The main insurance companies in both life and general insurance - Aviva, Direct Line, L&G, Pru, RSA, Axa, Allianz and the like - are all independent of any banking groups.

It's the same with the main brokers and online aggregators.

Of course, many of those companies use banks to help manage their assets - but so do all investors. And all of those companies use banks to help process payments and as corporate advisors in major transactions - but so do all companies.

 

[Deleted member 26715]

I know you are protective of your industry & I get that, but your inside perception of insurance may not be the same as your customers, it's the same in any business, the service that you think you are providing may not be the same as what the customer receives.

I can also trump your 21 years, by the fact that I have been a customer of insurance companies for over 40 years & yes, back then there was an element of loyalty, now because of the policies of the insurance companies that has all gone.

This constant churning of 'new' customers is ridiculous, last one I had was with LV, for the car, premium went up £50 from last year, went online they were offering the same policy £30 cheaper, I asked, they matched, why? what was the point, they wasted my time, they wasted their own time, why not just offer me the £30 less in the first place, I would have still felt the need to check because we can't trust insurance companies to do right by their customers.

 

[fossyant]

My Co-op content's insurance has remained static - did have a large(ish) claim for camera and lens last summer. Buildings are with another insurer as they used to be linked to the mortgage, but was cancelled when the mortgage was paid off last year.

 

[classic33]

Lloyds is the only major banking group with an insurance company in their group. The Co-op also has both a bank (just) and an insurance company. The other banks sell insurance - but they act as brokers and are pretty small in the market.

The main insurance companies in both life and general insurance - Aviva, Direct Line, L&G, Pru, RSA, Axa, Allianz and the like - are all independent of any banking groups.

It's the same with the main brokers and online aggregators.

Of course, many of those companies use banks to help manage their assets - but so do all investors. And all of those companies use banks to help process payments and as corporate advisors in major transactions - but so do all companies.

The Halifax had their own insurance, long before Lloyds were part of them. As did the TSB, in the late 80's.

 

[srw]

The Halifax had their own insurance, long before Lloyds were part of them. As did the TSB, in the late 80's.

It's the other way round. Halifax demutualised, became a bank, were bought by Bank of Scotland and then bought by Lloyds. And the Halifax insurance business is the only reason Lloyds has a non-life insurance company - although it's small. As for TSB in the 1980s, since it was at that time a publicly controlled quasi-mutual I'd be very surprised indeed if it were running an insurance company - as opposed to an insurance broker or selling white-labelled insurance.

All of which doesn't really do anything to counter my observation that banks haven't really ever had a major influence on the UK insurance industry.

I know you are protective of your industry & I get that, but your inside perception of insurance may not be the same as your customers, it's the same in any business, the service that you think you are providing may not be the same as what the customer receives.

Actually, no, I'm not. Insurance gets a deservedly bad press for some of its pricing practices (although I'm proud that the company I worked for for many years by and large steered away from the worst practices). And I no longer work in an insurance company. The post you're replying to was merely correcting your incorrect assertion that insurance went downhill because bankers got involved.

 

[classic33]

It's the other way round. Halifax demutualised, became a bank, were bought by Bank of Scotland and then bought by Lloyds. And the Halifax insurance business is the only reason Lloyds has a non-life insurance company - although it's small. As for TSB in the 1980s, since it was at that time a publicly controlled quasi-mutual I'd be very surprised indeed if it were running an insurance company - as opposed to an insurance broker or selling white-labelled insurance.

All of which doesn't really do anything to counter my observation that banks haven't really ever had a major influence on the UK insurance industry.

No mention of the piece in bold, in the quoted post. Maybe you said it elsewhere.

 

[srw]

No mention of the piece in bold, in the quoted post. Maybe you said it elsewhere.

Perhaps you'd like to read the entire thread? You'll see there's a discussion over several posts which started with @Phaeton (it's post #19) making exactly that claim.

 

[tom73]

Did similar with Green Flag who tried to put it up by over 30%. The operative actually sugested I do it so I went online and got same as last years price.

I got told the same the once for home insurance why not just match over the phone lord knows.