S&P places emphasis on retention

Ramesh Sharma

April 1, 2006

With much of the emphasis recently on the lack of payment protection among purchasers, the insurance firm wants to shift some of the attention back on retaining clients, who can often be fickle about continuing with the policy.

As part of this, Select & Protect has stated it will continue to offer 14 months cover for the price of 12, without any commission penalties, as a way of offering the client an incentive to stay with the company, rather than the client switching after 12 months if any incentive is just at the start of the policy.

Bruce Reid, managing director of Select & Protect, commented: “The two month’s free cover offer is an innovation that we feel will have huge customer appeal and will tip the balance in the intermediaries favour at renewal time. It is a ‘win-win’ for the client and the broker.”

The campaign by the insurance firm is aimed at better educating both the intermediary and the client regarding general insurance and it is hoped that by offering incentives, it can influence brokers into pushing products, such as mortgage payment protection insurance (MPPI) more.

Other incentives on offer from Select & Protect include no claims discounts, which are stepped back depending on the size, type and frequency of an insurance claim, so that the client only loses the discount on the area which they are claiming against, rather than the entire policy.

Adrian Kidd, independent financial adviser (IFA) at Mint Financial Services, said: “Often, clients should be fickle about everything as when the IFA looks at the general insurance stuff when they come to remortgage, often from high-street banks, there are cheaper policies elsewhere. But once they find a policy that is cheap and works for them, I find the client is usually inclined to stick with it.”

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