Brokers alerted to direct debit failures
CETA is advising brokers to alert clients quickly and directly if an expected regular payment on a policy has not been received.
The intermediary network expects the number of failed direct debit payments to rise as the recession bites and suggests brokers need to take a pro-active stance, not assuming that a missed payment equates to a cancellation.
The group’s managing director, David Quick, says: “Brokers should be getting daily default lists from premium finance companies about payments that have not been received and need to make sure they follow up each one.”
He adds: “There is a good chance the client does not know about the missed payment and will appreciate being alerted directly rather than finding out several days later when they are hit by various penalties from their bank or become aware of other action against them.”
However, there is little doubt that the recession is leading to high cancellation rates on home insurance.
According to recent figures from the Association of British Insurers, one in four people have cancelled their home insurance in efforts to survive financially.
In a survey conducted by YouGov on behalf of the Association, 22% of respondents said they had ditched their home contents insurance during the past year, while for building insurance the proportion stood at 17%.
Category: Insurance News
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