Brokers warn PCW and Chat GPT quote journeys risk leaving household customers believing they are 'uninsurable'

Prestige Underwriting calls for clearer explanations when online quote journeys cannot accommodate non-standard risks.

Almost three-quarters (72%) of brokers polled by Prestige Underwriting said they encounter customers with non-standard risks reporting that they were declined or unable to obtain cover from price comparison websites (PCWs), ChatGPT and other AI sources collectively.

Customers who cannot obtain household insurance through PCWs can reach specialist brokers already believing they are “uninsurable”.

The findings raise questions about how PCWs explain unsuccessful quote outcomes, and whether customers understand the difference between a risk falling outside an online service’s appetite and cover being unavailable across the market.

In the poll of 98 brokers operating in non-standard markets, 64% said customers approaching them after a PCW decline believe they are “uninsurable”. The 64% includes 15% who said most customers approaching them with this reflection, while 11% said around half do and a further 38% said a minority do.

Prestige said the findings point to a customer journey problem - an unsuccessful search can be interpreted as a verdict on the customer’s risk profile or their property’s insurability, rather than the limits of the particular quote service.

The research found that brokers see a range of non-standard factors causing household risks to be declined by PCWs. The factors most commonly cited by brokers were non-standard construction (63%), unoccupancy (60%), subsidence history (56%), flood risk or location (55%) and previous claims history (46%).

These percentages reflect the factors cited by brokers, rather than measured decline rates for each type of property.

Prestige said these are often risks that specialist brokers and MGAs are used to assessing, but they can create barriers for customers using highly standardised online quote journeys.

The research also suggests customers may be reaching the end of those journeys without a clear route forward. More than eight in ten brokers polled (81%) do not believe PCWs are signposting customers to specialist brokers after declining them because of non-standard risks.

Alison Williams, Managing Director at Prestige Underwriting, said:

“For a customer, reaching the end of a quote journey without an offer can feel like being told their home cannot be insured. Our research shows brokers are encountering customers who have drawn exactly that conclusion. 

“The way an unsuccessful result is explained matters. Customers need to understand what the service has been unable to offer and whether their circumstances may need specialist assessment. Non-standard construction, unoccupancy or a history of subsidence can require a more detailed underwriting conversation. An online journey that cannot accommodate those circumstances should explain its limitations clearly.

“A decline does not mean a customer is uninsurable. We need quote journeys that give customers enough information to make their next decision with confidence.”

Prestige said reviewing unsuccessful quote journeys should form part of the industry’s work on consumer understanding and support under the Consumer Duty. It called on PCWs and their insurance partners to examine the wording, explanations and next steps presented when customers cannot obtain a quote.