Simonx | 12th November 2019 - 4 min read
Subscription services have become rather popular. Netflix, Spotify and Hello Fresh are just some of the major ones that spring to mind. They offer everything from clothes, food, music and other types of entertainment. They’ve, for the most part, made consumers’ lives easier, especially when it comes to things they purchase and consume on a regular basis.
So, it’s no surprise that insurance companies are keen to get in on the act. Insurance is, after all, a product that’s consumed regularly and easily lends itself to being converted to a subscription service.
According to a Which.co.uk review, HSBC is the latest company to offer a subscription service in a ‘pick-and-mix’ style. It allows customers to pick different types of policies for a single monthly fee.
HSBC calls this new offering ‘Select and Cover’ and customers can choose between three to seven insurance products that cover travel, mobile, phone, gadgets and life from £19.50.
This follows not long after Aviva offered something similar last year when it launched a subscription home and car insurance offering.
According to Which.co.uk, AvivaPlus was created to make insurance more flexible and give customers the ability to change their cover as much as they wanted to without incurring charges.
It’s also meant to be the answer to customers who were penalised by their loyalty to one brand. According to Which’s research some were paying 38% more in home insurance premiums.
But have insurers got the ‘mix’ right so far? What’s a subscription service meant to offer? In our opinion, and based on some light research a successful subscription service from an insurance provider should offer/meet the following needs:
Do you have the technological infrastructure in place to offer a pick-and-mix product? If not, it’s something to consider, particularly if it proves popular with customers.
Simon spent over 10 years programming from behind a keyboard, before transitioning across to management. A keen adrenaline junkie, whether that involves going up the mountain or over the edge of the cliff. He learned his management skills not just in the I.T world but also running youth camps and conferences, helping teenagers find a footing in life. He also really likes pie.