Saga has made headlines today as its shares dropped dramatically, following a posted loss of £134m. The over-50s specialist has suffered some competition recently from other insurers and brokers, all keen to grab a slice of the grey pound. The company has also made a foray into running cruise ships, which has been successful, generating over £6m in profits in 2017/18.
A shift in core strategy is now likely, and Saga look set to offer actual rewards for loyal customers, instead of offering low premiums to hook in new customers. James Quin joined Saga, moving from Zurich last year, which is a key appointment for Saga. It’s no surprise then to see that today Saga launched its new three-year Fixed-Price Promise for standard home and motor insurance products. Here’s the press release below;
Addressing the consumer demand for choice, certainty and transparency in insurance, Saga has created new insurance policies that deliver a unique package of benefits, while promising that if a customer’s circumstances don’t change, then neither will their price.
The UK’s leading membership organisation for the over-50s, Saga is the first to bring the Fixed-Price Promise to market for motor insurance, providing its members with a service that no other provider offers. Saga members will now be assured that the cost of their insurance policies will not change year-on-year and that they are covered by additional features as standard. New features onward transport – to get customers to their destination in the event of an incident – are all included as in the five-star Defaqto rated products for home and car insurance.
Key feature information:
- Saga Car Insurance includes as standard a fixed three-year Fixed-Price Promise, onward transport solutions to ensure customers are never left stranded when vehicles break down, legal fee costs, and private medical cover for the insured and spouse if they are injured in a road accident.
- Saga Home Insurance includes as standard; a fixed three-year Fixed-Price Promise, damage caused by pets, matching items cover, and protection for personal belongings away from the home.
Although the price is fixed for three years, policyholders for both home and motor insurance, are not tied in for the three-years. Customers will have the choice to shop around annually, encouraging competition, but with the assurance that should they stay with Saga, the price will remain the same.
Gary Duggan, CEO of Saga Services, commented: “We are extremely proud to be the first to market with a three-year Fixed-Price Promise for motor insurance and believe our home insurance commitment provides a unique package of benefits to the products already out there. Our three-year fixed-price insurance is only available direct from Saga and give customers the reassurance that if their circumstances don’t change, then neither will their price”.
“We are always listening to our members’ feedback to ensure our products continually evolve to meet their needs. We are delighted that we have received an overwhelmingly positive response from customers in our early trials for the Fixed-Price Promise product and we plan to continue to put them at the heart of the products that we tailor for them.”
Saga’s new fixed-price insurance is only available to customers direct viaor 0800 092 3908. It will not be available through price comparison sites. Both home and car insurance products are designed to give customers peace of mind and provide the comprehensive, high-quality experience that car and homeowners expect from Saga.
Is Pay-Per-Mile The Future?
James Blackham, co-founder of By Miles, “While a step in the right direction, Saga hasn’t gone far enough to ensure fair pricing for all its customers.
“By offering policies that freeze premiums for three years they might be guaranteeing that customers costs won’t go up – but if as prices generally improve over time for customers they are effectively still locking them into potentially inflated premiums. If nothing has changed, then a year later their quote should be going down, not staying stagnant”
“I’d like to see insurers committing to making the policy prices offered to renewing customers the same as new customers – as we do.”