Insurance customers spending more time on shopping around
Increased innovation and competition in the insurance industry drives shopping around
Premium Credit’s Insurance Index shows 66% of adults use some form of credit to pay for one or more types of cover
More than two out of five insurance customers are spending more time shopping around for the best price and cover since the start of the COVID-19 crisis, new research1 from the UK’s leading premium finance company, Premium Credit, shows.
Its study found that 43% of insurance customers say they are taking more time to compare prices and the quality of cover since the pandemic started with increased innovation and competition in the industry the main reason for their increased interest.
More than one in four (26%) who are spending more time shopping around say they’ve switched to using digital platforms during the crisis and have saved money as a result of comparing prices. 36% say they are spending more time shopping around because they got used to doing this during the lockdowns and restrictions.
Premium Credit’s Insurance Index shows that around two out of three (66%) insurance customers use some form of credit to pay for one or more insurance policy. Credit cards are the most popular form of borrowing with 35% using them compared with 27% who rely on finance offered by their insurer and/or premium finance.
Its study found that one in three (34%) customers who use some form of credit to pay for one or more insurance policy borrowed more than they had in the previous 12 months. Around 27% blamed insurance premium price rises for their increasing use of credit.
Premium Credit is advising customers to consider premium finance which, for a small charge, enables them to pay monthly for cover instead of in a lump sum. Spreading payments in such a way can help ease cash flow challenges and make paying for vital insurance more affordable.
Adam Morghem, Premium Credit’s Strategy, Marketing & Communications Director said: “The COVID-19 crisis has accelerated innovation and the use of technology across many industries and that is being reflected in the insurance market with customers spending more time assessing the most competitive prices and the best quality of cover. A trend that is set to continue during the increasingly tough global economic conditions.”
“Unlike other forms of credit, like credit cards, premium finance is specifically designed for insurance buyers to help make important insurance policies affordable and improve cashflow. Looking to spread the cost of an annual policy into more manageable monthly payments works for many millions of UK consumers and businesses.”
Authored by Premium Credit
About Premium Credit
We are the leading provider of premium finance in the UK and Ireland, and the only company endorsed by BIBA.
We are authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. We serve over 2.1 million customers, process 24 million direct debits and receive advances of £3.5 billion.
For over 30 years, we’ve led the market through thought leadership, innovation and technology and have helped our partners offer finance compliantly to their customers through face-to-face, telephony and online channels.
We continue to invest to ensure we provide a quality service and support that helps you grow your business and commission. From the delivery of a seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, we are committed to growing the premium finance market.
Our Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.