The ’new law’ (if indeed it is a law) is complex.
Obviously, an insurer (or much more likely, their broker or sales outlet) should offer each and every customer the ‘Best deal’. That comes under the rule (it’s not a law, though it can be applied like one) of ‘Treating customers fairly’. That, as professional reinsurance brokers - dealing with values in the billions of pounds and premiums in the millions, all for ‘professional buyers’ - is drummed into us. It should, in theory at least, get applied to Joe Public (who needs protection, if only from themselves) with their damned Motor insurance at £65 a year, all in. But it doesn’t. It borders on the Wild West of selling, in what should be a highly regulated market.
It isn’t thought that simple. Tariff systems (where everyone pays the same) were outlawed, as was price fixing in collusion between insurers and their agents; we probably have the EU to thank for that. Hopefully the legislation will not go up in flames in the forthcoming Bonfire of the Vanities, when the UK sets fire to EU legislation and ‘Takes back control’, what a fucking stupid and all but meaningless notion that is.
As price fixing and tariffs are illegal, pricing and terms are allowed to ‘float’, so they fluctuate in what is a very open and competitive market; there are lots of vehicles and lots of insurers. The broker / agent still has one last card up their sleeve, even when they have got a low premium on offer ie. the minimum they can sell to any customer, new or old. They can rebate / chuck in, a part of their brokerage. Nine times out of 10 that will be all that happens when they finally discount a premium. I don’t know what brokerage a sales agent generates per transaction and many might well have all sort of bonus deals, based on volume of sales. But I can bet it is not insignificant. To some degree or another, that rebating unbalances (or can unbalance) the otherwise reasonably level playing field.
So I checked the price details for the coming 12 months and f**k me if they aren't actually cheaper than last year! This has never happened to me before with Bennetts, usually they stick the price up come what may.
