LV Customers

[Grigio Van Grigio]

I think it's a marketing ploy - in the knowledge many take the easy option of renewing with a significant increase in year 2. I've been with them for 2.5 years - happy with the cover but premiums have increased from c.£500 to c.£800 in that time, despite no claims (and 'bonus' increasing...).
Make sure you scan the market a few weeks (but not months) before you're due to renew.

Differential pricing for new customers is no longer allowed in the UK so no longer likely to be a marketing ploy. Motor insurance now compared to a year an ago is significantly higher which could lead people to think the insurer is buying in business.

 

[JuanVecino2023]

Optimal is between 25- 30 days before renewal to get a quote

This actually works. I tested the algos a while back when insuring a car. I tried a range of start dates. I was noticeably cheaper when the start date was 25 days in the future.

 

[66tim99]

This actually works. I tested the algos a while back when insuring a car. I tried a range of start dates. I was noticeably cheaper when the start date was 25 days in the future.

Is this the most tenuous part of the algorithm to determine risk? I can’t imagine how someone who checks for a quote 7 days before it’s due can be realistically categorised as riskier than someone who checks 25 days before.
The fact that I get such wildly different quotes every year only tells me that premium pricing is a dark art based on some sound facts, with a tail of a newt and a thimble of nonsense stirred in to mash the outcome.

 

[JuanVecino2023]

Is this the most tenuous part of the algorithm to determine risk? I can’t imagine how someone who checks for a quote 7 days before it’s due can be realistically categorised as riskier than someone who checks 25 days before.
The fact that I get such wildly different quotes every year only tells me that premium pricing is a dark art based on some sound facts, with a tail of a newt and a thimble of nonsense stirred in to mash the outcome.

Nothing to do with risk profile.

Just sales & marketing. I suppose the closest proxy is APEX fares etc where you get a discount for buying early.

The later you leave it, the more of a captive audience you become.

I suppose, if you wanted to overthink it, there could be a correlation between the psychological profile of someone who shops early and risk profile.

A planner, who is meticulous and diarises their renewal may likely be a lower risk profile than a last minute Charlie who acts on impulse.

However, I don’t think their profiling is that complex. Yet.

 

[JuanVecino2023]

Is this the most tenuous part of the algorithm to determine risk? I can’t imagine how someone who checks for a quote 7 days before it’s due can be realistically categorised as riskier than someone who checks 25 days before.
The fact that I get such wildly different quotes every year only tells me that premium pricing is a dark art based on some sound facts, with a tail of a newt and a thimble of nonsense stirred in to mash the outcome.

The underwriter’s appetite for risk and their current client portfolio is a black box of complexity that even the Russian enigma couldn’t fathom.

In any given day, an underwriter might just not want to buy your risk and they price it accordingly.

 

[Agnes_Cali]

I recently got renewal email for my other car. I acknowledged it and checked quotes with other companies. Since it's imported car, insurance options are limited and after a few calls, I decided to go with the broker that sent me renewal. Just wanted to change mileage to a bit lower than last year. When lade on the phone plugged in new mileage, she found me new underwriter that offered policy at 50% of renewal cost. So, pricing is almost random and may depend on the time of the day or such a small thing like mileage. Maybe this particular insured decided to insure more imported vehicles or maybe they only go for cars up to certain mileage, who knows.

 

[Perfectos]

Underwriting is based on :
A) What has been my claims experience this period ?
B) What do I need to turn a healthy profit in the next period?
C) What can the customer realistically Afford ? (What job / vehicle / home / dependants etc)
D) How much more business do I need (see A&B)
E1) what can I charge to entice the customer?(see B)
Or
E2) What can we charge without sounding silly? (See B)
Or
E3) do I even what the business ? (See A,B,C, D &E)