We wanted to let you know as of 1 April 2017 Paymentshield will be updating their renewal letters for their Home and Landlords Insurance policyholders.
From this date, all general insurance companies must review the renewal documentation they send to their policyholders to make sure consumers are provided with greater transparency about their renewal price and their options at renewal.
Why are these changes taking place?
On 10 August 2016 the FCA published “Increasing Transparency & Engagement at Renewal in General Insurance Markets”. This policy statement set out the final requirements for firms regarding all renewal communications issued from 1 April 2017.
These requirements are designed to tackle concerns about the level of consumer engagement, the treatment of consumers by firms at renewal and the potential lack of competition that results from this.
What does this mean for Paymentshield policyholders?
Paymentshield have updated their renewal letters to accommodate the FCA’s requirements whilst maintaining transparency and simplicity at all time for our policyholders.
This means all policyholders will be provided with additional information to enable them to more easily compare their current cost for insurance with that proposed for the year ahead.
In addition, policyholders who’ve been with Paymentshield for less than four consecutive years will see new wording in their renewal letters advising them to check their cover level is still appropriate for their needs and reminding them that they can compare prices and cover offered by alternative providers if they wish.
For policyholders renewing for the fourth time or more, the FCA have provided the following prescribed wording which must be included in their renewal communications:
“You have been with us a number of years. You may be able to get the insurance cover you want at a better price if you shop around.”
Which customers does this change apply to?
This change will apply to all renewal communications for general insurance policies except for group policies and polices which have duration of less than 10 months.
Who has responsibility for implementing this change?
It’s the responsibility of the insurer or intermediary providing the renewal notice to make sure the renewal communications meet the requirements set out by the FCA. As Paymentshield are the intermediary in this case they’ve updated all relevant letters, systems and processes to make sure they’re ready for the 1 April deadline.
What are Paymentshield doing to help customers who might have questions about the changes?
The Paymentshield contact centre team have been fully briefed on the changes and are ready to answer any questions from policyholders. As always, should any policyholders wish to discuss their renewal options, Paymentshield’s customer advisers will be on hand to offer a full review of their policy and help retain the business on behalf of their adviser wherever possible.
If you have any questions, our Broker Support Team are here for you Monday – Friday, 8am – 7pm, on 0345 0615 100.
