This month Ageas Retail confirmed that it has stopped writing new enterprise for its over 50 model Fortress Cowl. The dealer, which has over 280,000 clients, will proceed to service present policyholders, whereas Ageas mentioned it can proceed to courtroom new enterprise from over 50s with one other model, RIAS.
The demise of Fortress Cowl, and concentrate on RIAS, raises the query of what manufacturers have to do to focus on policyholders over 50.
Utilizing our pricing toolkit and Insurance coverage Behaviour Tracker – which screens the renewal and buying journey of 48,000 clients every year – we’ve got checked out how older drivers and householders like to buy.
Right here’s 6 issues it’s essential to find out about this phase
1. They’re a loyal bunch
They’re almost twice as more likely to have been with their present insurer for 9 years or extra and a couple of third much less more likely to have solely been a buyer for one 12 months. Some 15% of over 50s have been with their dwelling insurer for greater than 9 years (vs eight% of below 50s) and 10% have been with their motor insurer for that lengthy too (vs four% of drivers below 50).
2. They’ll keep in the event that they such as you
Over 50s are a lot much less more likely to swap suppliers. For buildings and contents insurance, 35% of customers aged 50 and over switched at renewal in comparison with 43% of below 50s.
Amongst those that don’t store round, the primary motive was that they like the corporate they’re with. That’s means forward of below 50s. It additionally signifies they’re much less more likely to be pushed by worth when deciding whether or not to resume or swap. For motor clients, 11% mentioned their principal motive for not buying round at renewal was that the worth was about the identical as final 12 months, in contrast with 18% of below 50s.
Did you turn dwelling insurance manufacturers at renewal?
Did you turn motor insurance manufacturers at renewal?
three. They use aggregators lower than below 50s and so they like shopping for by telephone
Amongst clients who just lately shopped round at renewal, 90% of below 50s dwelling insurance renewals used an aggregator, in contrast with 77.9% of over 50s.
Though clicking by from an aggregator was the dominant channel utilized by over 50s to get a quote from a house insurance model, internet direct and phoning a supplier instantly have steadily remained vital channels (collectively they outstrip aggregators) and have proven no indicators of waning within the final 5 years.
four. They face rising costs
For buildings and contents insurance policies, the typical premium quoted for over 50s rose by three% within the 12 months to January 2017, whereas premiums for youthful householders rose by simply 1% in the identical interval.
In motor, costs elevated by 10.9% within the 12 months to November for over 50s, and by 16% for drivers over 70 – the best of any age group.
5. They’ve rather less alternative than they did a 12 months in the past
The variety of manufacturers providing quotes for householders and notably for motorists over 50 has been steadily declining up to now three months. Finding out quotes throughout all aggregators and direct channels, we see a discount for all sorts of older clients.
6. However don’t take them without any consideration
Over 50s could also be extra loyal to manufacturers they like than youthful policyholders, however the essential level is that it helps in the event you ship a service they recognize and aren’t perceived as ripping off older clients. That may imply promptly answering calls and protecting in contact all year long to take care of a optimistic model sentiment. And with renewal pricing disclosure necessities across the nook – together with a obligatory prescribed message to encourage buying round for patrons who’ve renewed 4 consecutive instances – we could effectively see clients aged over 50 hit the aggregators, telephones, and direct internet channels in unprecedented volumes.
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