Insurance products for UK residents

Ecclesiastical Pulls out of standard House Insurance

The announcement by Ecclesiastical that it is pulling out of the house insurance market follows the decision by NIG last year to do the same. Ecclesiastical do say that they intend to increase their presence in the non-standard market. So Why is this.

One possibility is that the increasing use of aggregators to buy 'non-advised' house and motor insurance online is resulting in prices being forced unacceptably low and that Ecclesiastical do not want to provide a better policy at an unsustainable price. So they are cutting their losses.

However they do intend to stay in the non-standard market. This is presumably because it is a market where an insurance broker can help a client who has non-standard features e.g. subsidence risk, thatched roof, poor claims etc arrange insurance at a reasonable price.

The fact that each non-standard case is unique means that the advice given by a broker that knows the market is invaluable and, of course, the premiums will be more realistic. Any consumer buying house insurance online has only themselves to blame if they forget something and as a result a claim is turned down.

In the meantime consumers are chasing the lowest price - and forgoing the safety net of an insurance broker to advise them as to the most suitable policy for their needs.

Will more companies pull out? Time will tell - all we know is that buying through aggregators is cheap for the consumer - and very expensive for the underwriter.

For more information contact JB Portwood john.portwood#portwood.co.uk

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