The using of Direct Debit for female customers
According to Bacs Payment Schemes that insurance companies should change to Direct Debit to defend existing female policy holders and to interest female customers. Many female customers will switch to another insurance company if the deal with rising car insurance premiums up to £ 400. The call comes as a reaction to a landmark European Union court ruling.
Bacs said that Direct Debit is already well-known with female policy holders and research shows that 51% use it to pay their car insurance on a monthly basis. Bács added that the annual premium would be increased by a quarter if there is additional demand for this payment method. In his research, Bács revealed that nearly half of women switch operators if they pay their premiums by Direct Debit, increased by 8% from the previous 12 months.
“Insurance companies should consider Direct Debit as a way of decreasing consumer resistance to higher premiums”, Dawneth Perry, market sector manager at Bacs said. “Direct Debit can be a considerable value tool for insurance companies in these difficult times, both in terms of securing new policy holders and helping to prohibit churn, which continues to be a large issue for the industry.”