- Disagree (58%)
- Agree (35%)
- Not sure (7%)
Our latest poll seeks your view on the sometimes contentious issue of upfront premium discounting on new business and is sparked by this week’s announcement of a new premium structure option launched by Zurich (see: Zurich Launches ‘Flatter Pricing’ Option).
The sector appears to hold divergent views on this issue. Many are critical of upfront premium discounting because of the regular incidences of significant premium increases for stepped premium policy holders once the discount period has ended.
Others, including many advisers, appear to support the practice of upfront premium discounting as evidenced by the large volume of new business written on these terms.
What should insurers be expected to do?
What should insurers be expected to do? Must they end the practice of upfront discounting? One argument says ‘yes’ to this proposition, in order to protect the client from sometimes unmanageable pricing increases down the track, while others would argue that insurers are simply catering to demand imperatives set by a large cohort of advisers who vote with their feet in selecting the discount premium pathway at commencement.
The Zurich initiative we’ve reported this week effectively offers advisers and their clients a choice as to which premium structure they wish to adopt – with some client choices informed by the length of time they’re seeking to hold the insurance cover.
While there are plenty more scenarios we could paint – we’re offering you the opportunity to have your own say – by your vote and by leaving your comments, if you wish.
Tell us what you think, and we’ll report back next week…
