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LF comments on insurers contacting other insurers' customers with incentives

Journalist: Laura Purkess, Freelance

ended 28. August 2026

Hiya, I'm writing an article for The i Paper on third party capture / client poaching, where insurers contact another insurer's customer offering them incentives like cash to go with them instead. I have seen a customer offered £500 by Aviva to claim with Aviva instead of using their own insurer and it was paid directly to their bank account, for example.

I'm looking for expert comments around:

-What this practice is, whether it's becoming more common and if so, why? What's in it for an insurer to do this?

-Is there any net benefit to customers to accept these incentives and go with the other insurer, or should they stick with their own? Do you lose any protections? Could you get a worse deal overall?

-Any other tips on how to reduce insurance claim costs etc.


Thanks!

 

1 responses from the Newspage community

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Editor
Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
£500 is not free money. If an insurer is offering you cash to take control of a claim, ask yourself the obvious question: what is that control worth to them?

Third-party capture exists because insurers want to get in early, manage repairs, contain hire costs and control the economics of the claim. That may save them money. It does not automatically mean it saves you money.

I would be very wary of making a five-figure claims decision because somebody dangled £500 in front of me. Once you hand over control, you need to know exactly what you are giving up: choice of repairer, negotiating leverage, replacement vehicle arrangements, complaint routes and what happens if the repair becomes more complicated.

The customer should not be seduced by the headline incentive and ignore the small print.

If an insurer has to pay you £500 to persuade you to move the claim, that alone should make you stop and ask why.