Immediate Future for the GI Market: Challenging?
Category : August 2016
Following Britain’s decision to leave the EU, the media coverage in the insurance industry erupted with UK insurers concerned on how this would affect their business. However, is this the calm before the storm for the contents market? Following a post-Brexit survey conducted by Retail Economics this could be the case.
Whilst the industry has seen a dramatic change in claims, and in particular contents claims, the rise of insuring gadgets and technology has altered the UK market. Insurers are now beginning to appreciate the importance of these devices, creating more tailored and attractive policies for customers. This month, the market has already seen the launch of Back Me Up powered by Ageas, which enables the insured to swap in/out products to protect and with no annual contract it suits the millennial market.
It has been the view of some that insurance is known to be a grudge buy, so following Brexit and the subsequent survey, the results revealed that three-in-five Britons are worried about the impact of Brexit will have on the economy. A quarter of customers are predicting that they will cut back on their spending, especially on electrical items such as TV’s and Tablets. A reduction of products means a reduction in policies sold.. And it isn’t only the contents arena that will be affected. 37% of customers had intended to make large purchases prior to the referendum on furniture, flooring and bathrooms but following the verdict are likely to not commit to the spend.
Now more than ever, insurance companies are going to have to be more innovative.