Consumers want to make sure their GI covers them

We have been doing some work in the general insurance market, and have noticed an interesting trend which could have some read across for protection. Although for a long time, the classic home and contents insurance product has been driven by price, consumer behaviour is changing. Some of the firms we have been working with tell us that consumers increasingly want to make sure they are covered because of the consequences of a policy not paying out. They may have a flat roof or the wrong locks and are worrying about this more than in the past. We are being asked to look at processes that give consumers the reassurance that their home and the policy match up properly. The trend may be driven in part by the extremely changeable and unseasonal weather which the UK has experienced recently.

Clearly, if you can see more risk of flooding, you may also realise that you need to ensure your policy will pay out if your house floods. In terms of protection, there may be lessons to learn. Although thankfully most claims are paying out, something which has been a huge boost to the reputation of the industry, it might be a good time to start suggesting gently that in protection as with home and contents it is not just the cheapest cover you need but you also need to ensure the cover suits your circumstances. Some of these eventualities are of course a lot worse, than a flooded cellar.