The Changing Consumer: 1 in 3 consumers now actively negotiating lower prices on Insurance
Insurance consumers now willing to switch for €10
Insurance specialist www.getcover.ie have said they that have noticed a three fold increase in calls in the last 18 months from consumers looking to re-negotiate a better deal or restructure their policy to produce a lower premium, with 1 in 3 consumers now prepared to invest some of their own time in an effort to cut costs. This compares to 1 in 10 before the recession. They say that from this Recession has emerged a new wave of tougher, price conscious and value savvy consumers who have mastered keen negotiation skills and are prepared to go through the contract with a fine tooth comb to achieve cost savings.
Louise Ledwidge, Household Insurance Manager, www.getcover.ie commented, “The day-to-day activities of my job have changed dramatically in the last 18 months and I spend much more of my day on the phone to consumers assisting them to achieve premium reductions than I would have previously. Approximately 25% of the calls that I receive are from consumers looking for discounts or to consider cutting some of the benefits on their policies, to save money. And that’s not all – consumers are doing their homework. Very often when you quote a price a to a consumer they will go off to research on-line or make several more phone calls to obtain alternative quotations before calling you back to take out a policy”.
GetCover have outlined the Top Five Consumer Questions which they now hear every day – and which they would not at all have heard in 2007:
1. Can I get a discount on the quoted price/ can you do any better? /is that the best you can do?
2. Can you match the price quoted by another provider?
3. Can you throw in any additional benefits on my policy?
4. What could I change on my policy to reduce my premiums? – typically people are reducing their buildings or contents sum insured
5. What did I pay last year? – More than ever consumers are comparing this year’s premium to last year’s as they are a lot more price conscious.
Louise went on to comment, “Thankfully, although people are much more price conscious and better informed these days they are being clever when it comes to insurance – in the past, they would only consider switching providers if the saving was greater than €25-€50 euro – that threshold appears to have fallen to €10-€20. In addition, consumers are sufficiently knowledgeable not to take on large claims excesses for a relatively small reduction in their premiums”.
www.getcover.ie is one of Ireland largest online travel, household and health insurance providers. Established in early 2007, it is a fully Irish owned and run company, it is the original of its kind in the Republic Of Ireland allowing Customers to arrange, and purchase, personal insurance products in a simple and painless way on-line.