Sometimes when you request a quote, particularly for business-related insurance, we may ask you for a target premium. It is entirely your decision whether you share this. In this blog, we’ll be covering why it might be in your best interests, as well as why we ask for it.
What is a target premium?
A target premium is what you are currently paying for your insurance cover or have been quoted for renewal from your existing insurer. It typically excludes things such as admin fees.
Why should you tell us your target premium?
We understand the scepticism that people have when they’re asked for a target premium. The fear can stem from a lack of trust or understanding why you are being asked, and if you’re a new customer using a new insurance broker it is understable to be cautious.
However, withholding a target premium can result in a long drawn out process and make it trickier for your insurance broker to find quotes. It may result in fewer insurance companies quoting, and as such can result in less competitive quotes.
When insurers have target premiums they are usually much quicker to quote on the risk. This is a win for everyone involved.
Ultimately the target premium is there as a target to beat. Insurers know that if they can aggressively undercut your existing quotes with similar cover then they’re more likely to win your business.
Without a target, Underwriters cannot make a quick assessment of whether they have a realistic chance of bettering what is already on the table. A presentation without a target will therefore likely fall down the priority list in favour of quotations where they feel they have a good chance of offering a better deal and of securing new business for them.
By knowing what you’re currently paying, Brokers are better equipped to find you a better deal as quickly as possible.
What happens when we don’t have a target?
In the absence of a target premium, we ask insurers and underwriters to do their best with the information we have.
Of course, not everybody will have a target premium. For example, new businesses won’t have an existing policy to compare against. In these cases, we will enter into a conversation about expectations and offer our insight.
If you’re a new business, then you could likely benefit from reading our ‘Insurance Guide for Startup Businesses.’
If you’re looking to get insurance ticked off quickly, here are some tips:
- Provide a target premium – your existing quote from insurers
- Be transparent about what you can realistically afford
- Provide a copy of your existing insurance documents
- Find a broker that does the hard work for you
At Jukes Insurance Brokers, we specialise in working with businesses of all shapes and sizes to help find the right cover at the right price – without compromise.
We promise that we’ll always do our best to find you the best deals based on your insurance needs. Don’t just take our word for it, read our reviews.