Insurance is a complicated industry. When you buy insurance you may be using a number of parties, each will be taking a slice of your premium:
- Comparison sites
- Brokers
- Insurer
High fixed costs
Each one of these will have fixed costs asscociated with running an insurance company; office space, underwriters, call agents.
These companies will be spending 7-8% of revenue on marketing. When we consider that a large proportion of people will renew with their insurer (c. 65%), around 24% of your premium will go towards marketing costs.
Varying demand
The demand for insurance in a typical year can fluctuate by 20%, with quiet times often being between Nov-April:
Clever insurance companies will balance the cost of marketing, with the premiums they charge.
Changing market conditions
Sometimes we may find other market factors that change spend. 2024 saw a massive reduction in overall searches in the market in the typical “busy period”:
These trends will be directly linked to pricing changes.
Don’t get caught out by having your renewal at the wrong time of year!
InsureNudge was created to help manage your renewals and help people remember to get a quote.
We use your data to provide these cutting insights back to you, to help determine when the best time to buy insurance is.
It only takes a couple minutes to sign up and you can get reminders to check your renewal, as well as insights like “should you move your renewal date to get a cheaper price”.