Clawback culture holds dealers back from billion pound market

Clawback culture holds dealers back from billion pound market

A culture of clawbacks has made dealers wary of investing in mobile insurance, Supercover has told Mobile

Sales director John Fannon explained that despite the insurance market expected to hit £1bn over the next year, some dealers have been reluctant to invest. He claimed that cut throat tactics used by networks and distributors had made the dealer community wary of potential clawbacks.

‘When we talked to dealers they were reluctant to let us put a policy in place’, he said. ‘They believed if their customers made a claim we would fix the handset and then bill the dealer for it,’ he said. ‘This is nonsense as the insurer stands the cost however they believe that’s what happens because they have come from a world of telecoms where mobile networks or distributors will claw back commission.’

Getting ahead of the game

Changing these perceptions has been a priority for Supercover, who run incentives, staff training and workshops to encourage dealers tap into mobile phone insurance. As Fannon said, ‘if they don’t offer it someone else will.’

 ‘A major challenge has been resetting this mind set,’ he said, ‘and let these guys know that the stuff they’ve been led to believe simply isn’t true. That’s the culture they’re embedded in; they live in a cut throat culture of someone else grabbing the money. They just assume that any other supplier who is offering a service is likely to adopt the same pattern.

‘The insurance market is expected to be £1.031bn next year so it’s going up and up, two years ago it was £600m so dealers are crazy if they don’t want a piece of that. ‘




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