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Context
In what is being seen as a ‘first’ by some industry commentators, the CII’s Policy and Public Affairs Director, Dr Matt Connell, has published on LinkedIn a response to the Which? report about insurer premium finance rates.
Key points to note and next actions
- In the response, Dr Connell states that, against a backdrop of significantly increasing insurance premiums as a result of wider inflationary pressures, “it is essential that consumers can trust insurers to set prices fairly”.
- The response sets out that being able to pay for insurance in instalments is a valuable benefit for many consumers (and no doubt for many small businesses).
- Dr Connell points out that many insurance policies allow customers to pay by instalments for no additional charge, or by levying a small charge that allows for measurable and justifiable costs and factors such as the inflationary impact of collecting payments over time.
- This practice is in line with the CII’s code of ethics, which requires members to “not take unfair advantage if a client” and to ask the question “Do I say ‘show me where it says I can’t’ or do I say ‘is this ethical’”.
- Dr Connell finishes the response, perhaps aimed at CII insurer members, by adding that “Charging high rates of interest with no reasonable justification is not compatible with an ethical approach”.