Tricks of the Insurance Trade

All of us at some time have been approached by salespeople trying to convince us that we need another policy. It seems that, no matter how much insurance we already have, we never have enough. In most cases the man or woman trying to persuade us to take out their company's policy is genuinely trying to help us as well as trying to earn their commission.

Then there are the other salespeople who are only after the commission. They are the type of people who employ the smoothest patter to separate you and your money. They also use techniques which are at best highly dubious.

Churning

Churning is a broad description that covers two types of practice. In its purest form, churning occurs when customers are persuaded to cancel existing policies with an existing insurance company in favour of buying a 'better' one with a rival company. The customer is really being re-sold the same policy, but at great expense by a salesperson from another insurance company who benefits from the additional commission. This type of churning occurs between insurance companies, which makes it hard to detect as there is no central body of data to consult.

Twisting

The second type of churning - 'twisting' - takes place when an insurance company sells similar policies to its own customers. 'Twisting' is easier to detect because company files record the sale of similar policies to customers.

Sound Familiar?

If any of this sounds familiar, then you may have been the victim of an unscrupulous salesperson. If you would like to find out more information contact us and we will be happy to advise you. Our contact details are on our Home Page.