Chancellor’s George Osborne’s decision to hike insurance premium tax to 9.5%, announced in the Summer Budget, has undoubtedly cast a negative light on this year. The hike, which came into play on November 1st, will see home insurance premiums rise as providers struggle to manage the increase in tax. And as a result, the job of the intermediary in selling home insurance will get even more difficult.
Having been in the GI market for many years, we are well aware of the struggle some brokers have in selling the products. Insurance is one of those thing you hope to never have to use so getting someone to willingly pay for it can be tricky. Getting someone to pay perhaps a little more for a better product is harder still. Now with prices set to rise, brokers need to be prepared for a tough fight!
Of course, we all know how essential home insurance is. We’re not yet into winter but no doubt this season will bring with it the familiar horror stories that arise every year of families losing their homes and their belongings thanks to storms and wintery weather. Without adequate home insurance these people are left with no hope.
Make a resolution now to prioritise quality in 2016. Don’t let your customers cut corners to save a few pounds. Show them that the highest rated, five star products will offer them peace of mind that lesser, inferior products or, indeed, no home insurance, cannot. Peace of mind that is priceless.
It’s been a tough year for the insurance industry but if we stick together and remain vocal about the countless benefits of good quality insurance products in 2016 we can ensure both our clients and our businesses are protected.
