item 11 on the list is to: sell the first year at cost then rely on inertia to retain the customer while premiums go up to more profitable levels. It is - to my mind - a strange business model, but then I grew up in an era where the mantra was that acquiring new customers was expensive, so you tried to hang on to them. In most mass-commodity markets these days ( energy, and basic savings accounts, being perhaps the most annoyingly evident examples), the cost equations are different and there seems to be no value placed on customer loyalty. It would be interesting to do the maths and work out what the tipping point is i.e. at what level of annual 'switching' does it become more profitable to reward loyalty rather than penalise it? Ron
_____ From: Tim Harris [mailto:[email protected]] Sent: 06 June 2012 15:09 To: mogtalk2 Subject: Re: [mogtalk2] Mog Insurance All insurers make about the same level of underwriting profit on their motor book - i.e. none at all. In the good old days this was more than balanced by the investment income to be made from having everyone's premiums on deposit. Now, of course, there's naff all money to be made in the solid investment markets (insurers aren't allowed to make risky investments). So an insurer who is cheaper than the others is only really going to be able to do it through having lower operating costs. This can be achieved in a number of ways, such as: 1. Running overseas call centres 2. Being extremely resistant to / very slow to pay out on claims 3. Paying their UK-based staff a pittance and making them work long hours 4. Having very few customer relations staff, so it's very difficult to talk to someone 5. Outsourcing their claims assessor service, where the outsourcer company is paid on the basis of avoiding claims made to the Insurer 6. Skimping on their excess of loss reinsurance, leaving them potentially unable to pay out on a really big claim 7. Having lots of small print in the contract with loads of exclusions and limits to the policy 8. Not bothering to employ people with an understanding of the classic car world, and just relying on standard valuations 9. Cutting costs by doing automatic knock for knock rather than bothering to find out the true situation (so you lose your NCB in a no-fault bump) 10. All of the above plus some more I haven't thought of yet. The choice is of course yours. Me, I'd rather pay a few extra quid and have my pride and joy properly covered by a decent company. Tim On 6 June 2012 13:32, David Jones <[email protected]> wrote: John Funny enough just doing the same. One quote obtained is 30% less than my current insurer. Similar sort of deal between the two in terms of the detail, up on windscreen excess and down on accident excess but otherwise like for like. Now I'm worried they are kosha. They come recomeded by the MSCC, or to be presise they advertise with the club logo in Miscellany as MSCC "prefered insurer". Wouldn't have the dilema had they been 10% difference but 30% is a lot of money. North London based so the insurance is normally quite high. What to do? David From: John Porter <[email protected]> To: mogtalk2 <[email protected]> Sent: Wednesday, 6 June 2012, 13:02 Subject: [mogtalk2] Mog Insurance The changing face of car insurance eh!! Just ringing round as the Morgan Policy is due for renewal. I have 3 morgans with Equity Star via Gott and Wynne and I have no complaints but thought it was time to shop around and compare prices as I haven't done it for a year or two. I'm waiting for some to get back to me but the majority are very keen to push multicar policies and include the Freelander and Pam's TF on the same policy. Peter Best the only quote in at presnt and I've not put the +8 on their quote and they are way over the top. It will be interesting to see what the others come in at. John P#-o <span id=d'oh!" src="http://mail.yimg.com/ok/u/assets/img/emoticons/emo48.gif";> __._,_.___ . __,_._,___ View posts on The Mail Archive http://www.mail-archive.com/[email protected]/ Modify <https://www.listbox.com/member/?&;> Your Subscription <http://www.listbox.com> View posts on The Mail Archive http://www.mail-archive.com/[email protected]/ Modify <https://www.listbox.com/member/?&;> Your Subscription <http://www.listbox.com> View posts on The Mail Archive http://www.mail-archive.com/[email protected]/ Modify <https://www.listbox.com/member/?&; c> Your Subscription <http://www.listbox.com> ------------------------------------------- View posts on The Mail Archive http://www.mail-archive.com/[email protected]/ [http://www.mail-archive.com/[email protected]/] Modify Your Subscription: https://www.listbox.com/member/?member_id=22459785&id_secret=22459785-4a39ddf8 Powered by Listbox: http://www.listbox.com
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