Insurance firms to hike premiums - report

If new research by online banking payments platform Trustly is anything to go by, it looks like we’ll be seeing insurance price hikes from a majority of UK companies.

A recent poll conducted by Censuswide on behalf of Trustly found the following:

• 76% have changed how they calculate home and motor insurance quotes
• 74% plan to increase premiums to put old and new customers on the same policy figure
• 24% intend to raise prices by 61-70%
• 77% are worried about losing clients amid the now in-effect price walking ban
• 32% seek to offer new payment methods as a differentiator
• 29% are looking to provide instant refunds for claims
• 30% want to offer vouchers to other services
• 93% plan to provide the same benefits to existing customers (as they do to new ones)   

Read more: Insurance industry stakeholders react to price walking ban

“With reduced opportunities for cut-price offers for new customers, we’re going to see consumers focus more on the value and service they receive from their insurer,” said Trustly head of growth for financial services, Stuart Barclay.

“Customers care more than ever before about how quick and easy the claims payout process is – 79% agree that the speed of a claim payment affects their selection of insurer. Insurers need to focus on how they digitise and speed up this process, all while providing internal cost benefits.”