The issue of renewal pricing in the home insurance sector continues to come under the spotlight. It’s now been confirmed that renewal notices issued after April 2017 will have to include details of the premium price the customer is currently paying as well as the price they will pay on renewal to give customers a chance to change providers if they’re renewal price is too high.

It’s a move we welcome and one which should be in place sooner than next spring.

Unnecessarily hiking insurance premiums upon renewal – and doing it in such a sneaky and underhand fashion – is a foolish move by providers, and a dangerous one. If clients feel they are being duped into higher prices on renewal they may look elsewhere for a deal but they could also cancel policies altogether and leave themselves unprotected and vulnerable. Insurance is a hard enough sell as it is without consumers feeling like they are somehow being tricked.

Providers that have taken part in this practise have made renewal sales difficult for the industry as a whole. And now they could become even more difficult as another hike in Insurance Premium Tax is on the cards for October. The increase is the second in a year after then chancellor George Osborne announced in this year’s Budget that IPT would increase to 10% from October 1st (following last year’s hike from 6.5% to 9

If clients find their renewal price too high and choose to opt for inferior or worst still no cover at all they could be putting themselves in a very dangerous position, particularly with the winter months – and the problems they bring for homeowners – just around the corner.

The autumn months – September, October and November – are traditionally the three most popular months for renewals, both residential and commercial. Take the opportunity to contact your clients now before the IPT hike and speak to them about renewing their policy. Let them know that premiums are likely to rise, albeit marginally, from October so you’re speaking to them early to give them a chance to renew at a better deal.

They’ll appreciate the fact you’re helping them to save money and will be more likely to give you their business – and indeed future business – as a result.