As with many financial services providers, business insurance companies rely on two things to ensure most renewing customers stay with them. The first one is that they can usually “get away” with putting on small premium increments, usually low single digit percentages, year on year. And secondly, that the customer will not feel that the increase, in the whole scheme of things, is that bad and is not high enough to warrant looking elsewhere.
This is all well and good if you have the money to spare, but think about your customers. If you increased your prices, every single year, by 3 or 4%, eventually they are going to consider going elsewhere. Particularly when they have sales people banging on their door day in and day out offering the same, or similar, products for less money.
If youhave been with the same insurer for a few years, you will have seen, in 90% of cases, an increase in premium. All insurers have a dual pricing philosophy, it is basic economics, to allow new customers a better price than a returning customer.
But now is the time for you to consider looking elsewhere. 2010 is proving to be a tough year, forget the big increases in GDP. Whilst these are good, most businesses are still trading well below their 2007 levels.
The one, and only way, for you to save money on your renewal, without losing out on cover, is to speak to a business insurance broker. Their sole role in the economics of UK plc, is to serve you, the insurance purchasing business. Whilst they may have agencies with insurers, they are legally in a relationship with you (should you choose to purchase a policy from them) and they must offer you the best type of product available for the most competitive price.
Whilst we cannot guarantee anything, we are fairly sure that if you have renewal documents sitting on your desk, you can get a better price within a few hours by speaking to an independent broker.