UK Home Emergency Insurance 2016
Recent changes to the regulation of the home emergency market are forcing providers to rethink their sale strategies. Insurers are currently striving to adhere to the new market rules while ensuring the processes that initially brought success remain intact, such as selling products as add-ons to a regular household insurance policy. A sizable proportion of consumers still purchase home emergency cover as a standalone product – with good reason, as these often contain a more comprehensive range of coverage and additional features. The challenge is for insurers to drive add-on home emergency polices while retaining a coverage level similar to that of a standalone product. Consumers are also beginning to recognize the potential of smart technology in the home but remain largely uninterested and/or unwilling to embrace such devices. A lack of understanding about the use of smart home products is the most pertinent factor here, despite most customers recognizing the benefits they could have on their energy consumption. However, the responsibility lies with the insurer in promoting the benefits of the “connected home” and the impact these devices could have on premiums following their installation. This could perhaps be achieved by offering a variance of incentives.