View more on these topics

Assurant urges brokers to be wary of cheap protection

Specialist general insurance provider Assurant Intermediary is urging intermediaries to ensure their clients are aware of the risks of buying cover based on price rather than quality.

Kevin Paterson, sales and marketing director, says that trying to save a few pounds on home insurance could prove to be a false economy.

He says: “Certainly, this sector of the market faces a number of challenges as it works through a transition period. I think that is true of pretty much every area of personal lines of insurance.

“Price comparison websites have captured the imagination of consumers. The danger is that insurers in every sector will follow the trend of the motor market and focus on promoting price rather than cover.”

He says there is a very real danger that too many will fail to check whether they have the right level of cover and make their purchase decision on price alone.

The company is developing a panel of insurers to enable it to give intermediaries access to a wider range of cover and price points for their clients.

The panel is due to be launched early in the New Year.

Paterson adds: “Intermediaries are ideally placed to guide their clients through the renewal maze.

“Not all clients will be able to afford gold-plated cover, but with the right advice from someone that can explain what’s on offer, they can get the best cover that suits their budget.”

Recommended

Leeds launches shared ownership deal

Leeds Building Society is launching a shared ownership mortgage product, which has been designed to help first-time buyers onto the housing ladder, with a competitive fixed rate for shared ownership of only 5.99%.

Newsletter

News and expert analysis straight to your inbox

Sign up