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Since the beginning of the year, there has been a huge change within the insurance sector. Traditionally, premiums would be ‘walked up’ automatically come renewal time. Customers were forced to shop around otherwise they might be penalised for their brand loyalty. Insurance customers who shopped around and switched providers each year were often more likely to get a better deal than people who remained with the same insurer.  We’re here to help you manage resulting peaks in demand.

We are all aware of the key drivers in setting insurance premiums. The amount of the premium reflects the likelihood the customer will make a claim, based on factors such as age, health, type of employment, and where the customer lives. The new rules from the FCA mean that from 1 January 2022, premiums charged by an insurance provider to all home and private motor insurance customers renewing their policy cannot be higher than the price they would charge to an equivalent new customer for a corresponding policy.


James Dalton, ABI’s Director, General Insurance Policy, said:

We support these reforms and are pleased that the FCA has acted to bring them in across the home and motor insurance markets.

“While the FCA recognises that these changes could lead to price rises for some who shop around regularly, all customers should get fairer outcomes in the UK’s competitive home and motor insurance markets.

“These are very significant changes and insurers will work with the FCA to ensure as smooth a transition as possible for their customers.”


These new rules apply across all insurance markets and are designed to stop unfair practices or discrepancies in renewal pricing. How is your insurance adapting to these huge changes? From a CX perspective this can generate demand peaks given that, on renewal, customers are more likely to stay as they are automatically offered a more competitive price. Naturally, there might be questions and queries that need answering.

Below is an extract from The Association of British Insurers

ABI’s advice to help existing customers consider their options when their home and motor policies are due for renewal  includes:

  • Choose the policy that best meets your needs, which may not be the cheapest. It is crucial that you buy the policy that most closely meets your needs, not automatically opting for the cheapest cover.   
  • If considering renewing with your current insurer, check the renewal terms. Read your renewal documents carefully to make sure that the cover best meets your current needs, and that you are aware of any changes to the price, the scope of cover, new conditions, and any changes in your circumstances that you need to tell your insurer about. Speak to your insurance provider or broker if unsure.   
  • It could still pay to shop around. The insurance market will continue to be competitive, with a wide range of policies available from a range of providers. If you are considering switching insurers, make sure you check that the policy best meets your needs.

These changes will supersede an ABI/British Insurance Brokers’ Association (BIBA) initiative launched three years ago aimed at improving outcomes for long-standing customers – the Guiding Principles and Action Points. As part of this, insurers and brokers reviewed their approach to home and motor customers who have been on their books for five or more years.  A review of the initiative, published in July 2020, highlighted that there had been over 8.5 million pricing interventions across motor and home insurance worth a total value of £641 million. Individual firms reported an average saving per intervention ranging between £40 and £150.


The service at Bespoke International Group is designed to help our clients manage peaks in demand so that customers always have a high-quality, omnichannel customer experience.

When considering the impact on customer interactions, it is vital for leading insurance companies to have customer service and experience resources fully geared up and accessible for clients. The implications of getting this wrong, are potentially huge from a business perspective as it risks renewal clients looking for answers from competitors.


If you want to understand how Bespoke International Group can deliver an enhanced customer experience for your clients and help you achieve your business objectives, email us at [email protected]

Our CEO is UK-based and available to offer enhanced value through a one-to-one consultation.