Norwich Union (NU to those in the UK), or Aviva to the Rest Of The World (ROTW) is an insurer who amongst other things offers Car Insurance.
For years in the UK, car insurance, along with home insurance, has been sold based on price,
“Ring us we’ll match/cut your current renewal price”
“Call us and we’ll give all new customers a 20% reduction”
etc ran the mantra of the marketing blurb! A whole new industry of direct insurance aggregators and money/insurance supermarkets started up whose only real message was “come to us we’ll get you the lowest price”
Only a few years ago Direct Line (a Royal Bank of Scotland company) started to sell on the speed and quality of response and ignored the aggregators, they even tell you in their marketing they don’t quote via them.
Now NU have stated that if you renew through them, they’ll not only give you their price but those of their competitors, even if the competitors are cheaper.
So what exactly are they saying? They (NU) will tell you the insurance price and if you can get it cheaper elsewhere, if you decide to go there then you are only buying on price. If you’re buying on price then you probably aren’t the type of customer they want as you’ll only churn later on – watch their retention rates improve!
True lean marketing in action – they have recognised that other parts of the service and the brand can justify a premium in the market.
You might ask how do they know the price of the other suppliers? potentially they have an aggregator system which they don’t offer to the public but use in their contact centres when you call, what they can also do is collect your renewal data and build a much larger contact base for other products.
Is this curtains for the insurance supermarkets and aggregators in the UK? focus on price and ultimately you too might only have one way to go!