The following survey is gathering feedback on the possible introduction of a Cancellation Fee and Reinstatement Fee. Please share your thoughts to help us determine the best go-forward solution for the org.
Cancellation Fee - We are seeing Auto cancellation fees being charged among competitors in select states across the industry. To recuperate acquisition and onboarding costs for customers that bind, and cancel early in their New Business term, we are researching the option to charge a cancellation fee for new business non-pay and voluntary cancels.
Reinstatement Fee - Finance team completed analysis demonstrating that Auto, Home, and BL policies which are reinstated pose higher risk to cancel again with a high charge off balance, despite passing all reinstate guidelines. To help offset profitability concerns from this customer segment, we are exploring the opportunity to implement a reinstatement fee. We are beginning to see some competitors in the industry adopt this fee.