Comparative Quotations
Many of our clients are
nearing the end of a long term agreement and have been seeking
comparative quotations for their insurance programmes. We welcome this
opportunity to validate the cost effectiveness of our services and
trust that our renewal terms will always be competitive.
A word of caution for you when doing this, make sure the covers you
are comparing our premium with are similar. We have done a number of
exercises for our clients who have secured cheaper quotes from a range
of our competitors and have discovered that the savings they thought
they were achieving were not actually there.
One client believed they were saving just over 10% of our renewal
premium, when we went through the 'offer' we found that if we were to
match the terms, excluding subsidence, reducing the buildings sums
insured, deleting some of our covers and increasing the policy excess,
we could achieve a saving on our renewal premium of more than 25%, but
we strongly believed all these so-called savings were false savings.
A summary of our findings have included:
- One policy not
including subsidence - subsidence has been a massive cost to
insurers and we believe that without subsidence cover our policies
would be 15% cheaper than they are;
- Another policy
where the agent was arguing the 50% inflationary uplift was
equivalent to the CHIS buildings and contents sums insured. It is
not. We include the effects of inflation in addition to the
buildings and contents sums insured. On our Ansvar policies, the
only limit is the actual level of inflation itself.
- One insurer was
including £2M public liability indemnity, whereas CSCI require £5M.
The average additional premium for us to increase the limit of
indemnity from £2M to £5M is £165 + IPT.
In view of these
findings, we offer a comparison service to all our clients. Send or
fax us the best quotation you have received from any other insurer and
we will compare the covers, terms and, if required, the premiums too.
We are unlikely to be able to do anything on our renewal premium, as
we negotiate this with insurers before putting it to you, BUT we can
identify any areas where you would be making false savings.
Moral of the story: Be wary of 'bargain basement' offers, some
may be as good, but from the research we have done, the vast majority
are false savings. We would be pleased to give you a very straight and
simple comparison of the alternatives you may find.
|
