90% will seek better insurance deal

A survey of people’s health insurance plans for 2014 show that almost 90% will try to seek out a better deal as they realise they are getting no savings from loyalty to their existing policy.

According to Dermot Goode of healthinsurancesavings.ie, consumer loyalty is abating as people realise all members on the same plan receive identical treatment regardless of the length of time insured.

“There is no “no-claims bonus” and no account is taken of the policyholder’s loyalty to a particular insurer,” he said.

“The cover, benefits and service are based solely on the terms of the policy in the current year.”

A survey carried out on behalf of Cornmarket Group Financial Services found 88% of respondents said they intended to look for a better deal at their renewal date.

Only 26% had looked at a switch in the previous 12 months.

Those that did change their policy did appear to make significant savings. They revealed that:

* 37% saved less than €250

* 36% saved between €250-€500

* 16% saved €500-€750

* 7% saved €750-€1,000

* 4% saved more than €1,000

“In our experience, most customers want to retain all or most of their current benefits, while substantially cutting the cost of the renewal bill they’ve just received,” said Mr Goode. “In many cases, this is achievable and can sometimes be as simple as switching them to a cloned but cheaper plan with the same insurer.”

Of those surveyed, 52% said benefits was one of the main factors in their final selection, while price was only selected by 45%.

Finally, the survey looked at people’s tolerance for further price hikes. 11% of policy holders admitted that they would have no option but to cancel if rates continue to rise by 10-20%; 51% said that they would reduce their cover to the lowest level possible before cancelling; and 38% said that they would never cancel.