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Distortions to undermine pricing


11 June 2018 07:00

How to explain that the premium of car insurance can vary by several dollars from one insurer to another ? Even the insurers to explain evil. Therefore, it’s difficult to make it clear to the consumer.

This is what has been recognized Denis Dubois, president and chief operating officer of Desjardins general insurance Group (DGIG), during the Day the insurance of damage to 2018. He added that the pricing environment has become a real headache.

“The segmentation of the market is a crazy outcome of actuaries. People can’t understand the large price variation from one insurer to the other and it is difficult to see how the explain. This is a problem that really hurts the image of the industry, ” he said.

Michel Laurin, president and chief operating officer ofiA Auto and home, added that insurers have dug their own hole by turning the insurance premium in a commodity product. “The premiums to the downside, we can no longer continue. It doesn’t make sense for the client and not for us. “

It is necessary to listen to the customers, added Mr. Laurin. It is much easier to do since all of the conversations with the representatives are recorded. “It is very rich in information. “

The example of Mobiliz

Mr. Laurin has also given the example of the launch of the service Mobiliz in iA. The insurer wanted to offer the service only through the Internet, the sale of the claim. The application even allowed to call towing services in case of need.

Young customers, however, have insisted to continue talking to a person to get this service and begin the process of compensation. “It was a great lesson of humility. The client is experiencing an emotional shock. He needs someone to talk to, ” he says.

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