Quality outweighs price, says Assurant

1 June 2010 | By Natalie Martin

Results of an independent survey also revealed that one third of mortgage brokers see the Internet, direct sales and consumer preference to choose price over quality as the key threats to their business this year.  

Kevin Paterson, sales and marketing director for Assurant Intermediary, says: “It is encouraging to see that brokers stand by the quality of an insurance policy and view quality as far more important a consideration than price, despite consumers’ continued pressure to shop purely on price alone.  

“It is only at the point of claim that customers who buy solely on price without ensuring that the policy gives them the level of cover they’re looking for realise their mistake.  Brokers and the financial services industry can help consumers learn more about the quality of their policy, but we face an uphill struggle.”

He says the rise of aggregators has meant that the gap in perception between what an insurer believes is a fair price, and what the consumer is willing to pay has widened.

He adds: “A notable number of respondents also quoted regulation and RDR in particular as the key threat to their business in 2010. Unsurprisingly, just under a third of respondents quoted the recession and the poor state of the mortgage market as threats.

Assurant Intermediary carried out the survey amongst more than 2000 mortgage brokers in the UK. The survey will be carried out yearly as a barometer of UK broker attitudes to general insurance.