"For advisers too, the launch of this offer is intended to support their businesses and enable them to continue selling home insurance during this period of financial uncertainty."
The move – which will form part of Paymentshield’s permanent proposition going forwards - will enable advisers to directly offer temporary financial relief to clients.
Via the Paymentshield Adviser Hub, advisers will now be able to offer new home insurance clients a payment holiday for the first three months of their policy. The annual cost of the policy will then be spread over the remaining nine months.
In a recent YouGov survey of over 2,000 UK adults, commissioned by Paymentshield, 35% of respondents said they were actively looking to cut costs more than before.
Rob Evans, CEO of Paymentshield, commented: “We want to ensure that the best protection is accessible to everyone at all times, which is why we have made the three-month payment holiday a permanent offer to new and existing customers. In the current climate, this may be a very appealing offer to many people who have been hit hard by Covid-19. For advisers too, the launch of this offer is intended to support their businesses and enable them to continue selling home insurance during this period of financial uncertainty. Longer term, we recognise that a temporary payment holiday may appeal to those whose finances may have been heavily channelled elsewhere, such as into a costly house move or a first-time house purchase.
“We hope that it prevents people from either cancelling their home insurance altogether, or swapping to a cheaper alternative that they find online, without speaking to an adviser about whether that product even meets their needs. For advisers, the payment holiday can help to bring in new business, or can be a reason to get in touch with existing customers – helping to build a stronger relationship in the long-term.”
