Nice Home Live

Home insurance, like the rest of the insurance sector, has been pretty much the same for decades. The social environment has changed, the costs of insurance and the types of goods insured have changed, but the mechanics of insurance have remained largely in the same mould. That’s not a good idea in the New Economy. The old business models and home insurance methods are falling to pieces against the onslaught from new companies with entirely different business concepts, very low overheads, and well aware of the vulnerabilities of their competitors.

Custom home insurance- the new face of a huge sector

The problem for old style insurance is that it’s a top heavy, single mode product. The old style home insurance is pretty much a one way street, with common factors which effectively impose a basic style of insurance. That’s a particularly predictable approach to a market which is looking to save money, and doesn’t appreciate the steady growth of premium costs.

Predictable means beatable, and that’s exactly how the new custom home insurance policies approach being competitive. Combined with this approach is a New Economy business model. The new insurers don’t have the overheads of the big monster companies of the past. They’re highly streamlined, all online, and that includes their policies. This is an extremely cost effective approach to a highly margin oriented industry, and it comes with some major advantages for selling policies.

The low overheads mean the new insurers can offer cutthroat rates, and they can afford to be a bit less straitlaced with their policies. Home insurance, as all insurers know, can be a picky business, with a lot of contentious issues. The new insurers don’t offer No Frills policies, though. Instead, they offer policies having a lot of options, a sort of “checklist”, with a support and advisory system so people seeking insurance can choose a range of options.

Now the real benefit to the insuring parties- This type of insurance also allows the insured people to vary and modify their policies at need, online. That’s a major incentive to buyers, because it also allows them to manage premium costs.

If there was ever a working option to find exactly what the long suffering wallets of people trying to get insurance, this would be it. Insurance is seen as a necessity, but it’s also seen as a hit on the pocket nerves, which have had other problems since the 2008 crash, including an ongoing affair with mortgages and home prices.

It’s an almost classic case of economics and competition theory hitting the same chord at the same time. Add to this the business model differences, and the writing is definitely coming on to the wall for the old style policies.

The fact is that every comparison of home insurance quotes is creating clients for the new insurers. The old businesses will have to get on this gravy train, or join the dinosaurs.

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