Some interesting findings here from Prestige Underwriting;
Nine in 10 brokers believe poor signposting is preventing consumers with non-standard risks from reaching specialist help, according to new research from Prestige Underwriting.
The poll found that 91% of brokers believe consumers who struggle to obtain non-standard insurance are still being lost after providers decline their business.
Even when customers are referred, the handover is often limited. More than two-thirds of brokers (69%) said customers almost never arrive with referral details or other information passed on by the insurer or provider that declined the risk. In most cases, the customer must begin their search again.
Nevertheless there are signs of progress. More than half of the brokers polled (52%) reported an increase during the past year in referrals of customers who had been declined elsewhere.
The findings follow the launch of the BIBA and ABI Total Signposting Commitment, a voluntary initiative intended to improve access to insurance for retail customers who may otherwise struggle to find appropriate protection.
Direct insurers were the main source of referred non-standard customers, with 64% of brokers saying most referrals came from them. Price comparison websites were cited by 29% and retail banks or supermarkets by 26%.
However, only one in five brokers (20%) reported an increase in referrals from insurers, price comparison websites, banks and affinity brands since the commitment was launched.
Alison Williams, Managing Director at Prestige Underwriting, said:
“More non-standard customers are reaching brokers after being declined elsewhere, which is encouraging. For people with complex insurance needs, being turned away by one provider should not be the end of the road.
“Yet too many consumers are still being left to find specialist help on their own. Signposting has to become more consistent. The market has made an important start, but the opportunity now is to make sure customers are not simply declined and left to find their own way. That will help more people secure suitable protection with less delay and frustration.”
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