When a customer’s policy is due for renewal, it allows them to assess whether they wish to continue with their current product and insurer. There could be many reasons to change cover, but mainly, from a customer’s perspective, you should consider whether the policy still meets their demands and needs, and whether it is still providing value.
A renewal also provides an insurer an opportunity to review the terms of cover and price for the customer, so these may change.
The introduction of the General Insurance Pricing Practices rules means that insurers will undertake reviews of all of their products annually. This could result in terms changing, with a view to ensuring the products continue to provide fair value for the intended target market. Product changes should be outlined to the customer.
It is important that renewal communications are clear, fair and not misleading. This means that the customer’s attention is drawn to:
If renewal notices are not clear, fair and not misleading firms could be subject to a fine or action by the FCA. Lloyd’s banking group were fined £90 million for misleading renewal notices, it is essential ours do not mislead our customers.