Moody’s warns OFT motor referral will "hurt profitability"


Insurance

Insurance (Photo credit: Christopher S. Penn)

Somehow I suspect that, if this is the first time industry leaders take notice such a "warning", any criticism about arrogance or ignorance in the sector would be immediately vindicated!

"At a minimum it [the investigation] will create uncertainty for the industry and more significantly could result in lower motor premium rates.

"A reduction in revenue from lower premium would hurt profitability, particularly for those UK general insurers with the greatest market share in private motor insurance."

via Moody’s warns oft motor referral will "hurt profitability" Insurance Age.

How much does the industry actually care about its “policyholders”? Well, a big clue for me is that they are still, too often, referred to in that manner. Even the term "customers" really doesn’t do the relationship justice.

After all, as a policyholder, I haven’t just walked out of your shop having spent £1 on a newspaper or some sweets.

I have purchased a promise of protection against a future event that may result in financial loss or injury…I am a STAKEHOLDER in your business and NOT just some "sap" who believed the promises made in an over-priced advertising campaign – that manages to irritate and insult in equal measure!

Perhaps if you thought of me and treated me like your marketing people say you do, I might find it in my heart to look beyond the one-dimensional price message that pollutes my daily existence and ignore the constant reminders that shopping around is good – but being disloyal isn’t!?

Still, it is reassuring to know that, whether I’m old, young, male, female good or bad risk you aren’t singling me out for special treatment…you’ll mistreat and cheat us all across the board.

At least, in (allegedly) cheating re pricing you’re not discriminating against me. Well, until OFT tells me otherwise!

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