- Disagree (58%)
- Agree (35%)
- Not sure (7%)
The result in our latest poll suggests opinion is divided on the question of whether it’s ok to offer upfront premium discounts on new business.
As we go to press, the majority of advisers (53%) don’t support the poll proposition that it’s ok for insurers to offer choice in premium payment structures which include upfront discounting.
At the same time, 39% of those voting in this poll do support the proposition, with the rest unsure at the moment.
This question stems from our report last week on the launch by Zurich of a new premium structure option at policy commencement (see: Zurich Launches ‘Flatter Pricing’ Option).
This is an issue which has arguments on both sides of the equation…
This is an issue which has arguments on both sides of the equation. As we noted last week, the challenge for insurers is balancing calls from many in the sector to eliminate upfront discounting because of the significant premium increases which occur over time and the impact these increases have on policy holders, while still catering to the apparent popularity among advisers of lower initial pricing as evidenced by the significant volumes of new business written on these terms.
This is not an easy issue and it appears unlikely to be resolved in the short-term. We’ll welcome any thoughts you may want to share on this question as our poll remains open for another week…
