People in the UK are overpaying by at least £9 billion every year for insurance by not switching at renewal time, according to new research released today by the smart insurance app, Brolly
Around two-thirds (64%) of British consumers are overpaying for their insurance cover because they fall into the renewal trap - failing to switch insurance provider when it’s time for renewal. The research found that we’re most likely to be overpaying for our car and home insurance, with the highest potential of £170 savings on car insurance.
Brolly, the smart insurance app, helps consumers manage their insurance and stop overpaying. The app actively analyses the cover you already have and, based on the information you share about your lifestyle, checks the market to see if there’s a better option for you. You’re then guided through switching your policy in a few taps. In a first for insurance apps, it’s possible to switch and purchase insurance directly in-app. The service is already available for mobile phone insurance; and motor, travel and home insurance will be added in the next few months.
Phoebe Hugh, CEO and co-founder of Brolly, said: “Finding the right insurance is a long and complicated process. The result is that most of us give up and so end up paying too much for the wrong kind of cover. Insurance is important - it should not be this difficult. That’s why we’ve built Brolly to help people find the right insurance policy easily and save themselves time and money.”
To help stop insurance companies from taking advantage of customers not wanting the hassle of shopping around, the Brolly app prompts you when renewal is due, re-analyses your needs and checks to see if there is a better policy for you.
Phoebe Hugh continued: “What’s worse is that most of us don’t even realise we’re overpaying on our insurance cover. The insurance companies give us a good deal when we first sign up and then year on year the cost goes up and up. Instead of rewarding loyalty, they penalise you for it. The FCA found that a loyal customer pays 75% more than a new customer after 5 years - how is that fair?”
Launched in November 2017, Brolly is already helping thousands of customers save money on their insurance. The start-up has partnerships with insurance companies, Ageas, AXA, ERV and Markerstudy and will be adding more in the coming months. The app uses AI to find and analyse the customer’s current insurance cover and then identify better policies.
How Brolly works
Download the app and connect your email inbox so it can find your insurance details, or upload your existing insurance details
Answer a few simple questions about your lifestyle
Brolly then analyses your current cover, identifies where you are underinsured or where you’re overpaying
It helps you find the best policies for you from its insurance partners
And in a few taps you can buy the policies straight from the app