We continue to do everything we can to protect our most financially vulnerable customers whilst protecting your long-term income.
Therefore, in addition to reviewing the cover levels of their current policy to help with the cost, we’ll now also provide the customer with the option to switch to a new policy with an initial 3 month deferred payment period. This option will be available for Buildings and Contents Insurance, Landlords Insurance, and Tenants Contents policyholders.
We’ve launched this new option via our retention team because we believe it is the right approach to ensure we can help relieve the temporary financial burden for our most vulnerable customers, whilst still helping to make sure the things that matter most to them are properly protected.
We’re conscious that where customers take up the deferred payment option, both advisers and Paymentshield will experience a delay in receiving commission and income. However, by retaining the customer as a policyholder, advisers will still earn the same commission on the new policy, but in months 5-12 (when the customer pays their premium). With Paymentshield’s very high retention rates, we would hope that advisers benefit from retaining the customer for many years to come, rather than losing the commission altogether. Therefore, we believe this approach is in the overall best interests of both the customer and your business.
We do not expect widespread take-up as it has been put in place to help the most financially vulnerable. However, if you identify that any of your clients may need some support in this area please encourage them to contact our customer services team on 0345 601 1050. Whilst we will provide advice to your customer, you will still receive a commission for the policy(from month 5).
These changes are in line with the approach from mortgage lenders to defer mortgage payments for those customers who have been financially impacted by the COVID-19 situation. However, we’ll continue to monitor and review the situation and consider how we can best support you and our customers and will keep you updated as and when the situation evolves.