Even though some insurers say that clients’ premiums are guaranteed, clients may get an unpleasant surprise when a sizeable portion of the premium increase each year isn’t guaranteed for the period they clients thought. With some insurers, part of clients’ premium increases attributable to the cover increase they’ve chosen every year is not guaranteed. So, while the client may believe they have a guarantee, in many instances, less than half of the premium increase that clients signs up for is actually guaranteed.
Some providers that offer guarantees also reserve the right to change a client’s premium within the ‘guarantee term’. Reasons why an insurer may opt to change premiums range from legislation changes and inflation changes — based on an internally-determined inflation rate rather than changes in actual consumer price inflation (CPI) — to other conditions, such as their medical aid claims, changes to loyalty programme rules or whether the client has bought other products offered by the provider. And where there’s no guarantee offered, clients have even less certainty about what they’ll pay in future for their cover.
We offer the BrightRock, product to our clients, real 10-year premium guarantees — irrespective of their cover increases, how many times they go to gym a week or their driving behaviour. This means no unpleasant surprises in their budget every year when they get to their policy anniversary.