“The FCA found that a loyal customer pays 75% more than a new customer after five years – how is that fair?”
Those were the words of Phoebe Hugh, chief executive and co-founder of insurance app Brolly, when the insurtech released the findings of its new research on overpayment. Blaming what it called the “renewal trap,” Brolly said 64% of British policyholders are paying more than they should for insurance.
According to the start-up, which uses artificial intelligence to analyse existing cover and offer better options, consumers in the UK are overpaying by at least £9 billion annually by not switching providers when it’s time to renew. Launched last November, Brolly alerts users when a renewal is due and provides analysis of whether a policyholder is underinsured or overpaying.
It also enables consumers to switch directly via the app – the service is currently available for mobile phone insurance, with motor, travel, and home to follow.
“Finding the right insurance is a long and complicated process,” commented Hugh, who is a former underwriter. “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.”
“Our aim at Brolly is to help people understand their own insurance needs, find the best policies, and then help manage them simply and easily as circumstances change,” said Hugh in February. “People are blindly overspending and buying the wrong cover – so we’re using technology to try and stop that from happening.”