Best of breed
THE BROKER - 1ST APRIL 2007
Caravan insurance and cover for nightclubs are the latest schemes to join BIBA’s stable, along with an enhanced payment protection insurance policy. Graeme Trudgill explains what’s on offer.
Launching a new scheme or facility to go under the BIBA brand takes time. Throughout the year we are approached by many providers, both big names and niche specialists alike. But we do not take the decision to offer products to our members lightly and more are turned down than make the grade.
Each product must stand up to strong scrutiny from our General Insurance Brokers’ Committee and only when they are certain that it will be a valuable addition to our range and will truly add value to a broker’s business, will it receive the green light.
Ace cover for clubs
The Licensing Act 2003 came fully into force in England and Wales on 24th November 2005, effectively combining seven licensing regimes into one, and transferring licensing responsibilities from the magistrates’ courts to local authorities.
The move towards liberalisation has been forecast by the Government to create a “continental café culture” by a diversification of the night-time economy. This is presently geared towards the 18-24 year old age group, based upon the consumption of alcohol and exemplified in the emergence, over the last two decades, of chain pubs and themed bars. These can now be found across most town and city centres in Britain.
Maestro Tasker identified that a competitive and specialised insurance solution was needed to cater for the new breed of venues and to work in harmony with the new regulation affecting them.
Working exclusively with BIBA, the ClubPM product for late night operators was devised.
This launch will be welcomed by brokers that want to access a dynamic market and offer their clients specialist service. Ti allows ease of delivery including electronic documentation issued at inception and in-house authority enabling rapid quotes.
Qualification for the ClubPM product is linked to policyholders being able to demonstrate compliance with a risk management code setting out the minimum acceptable standards of operation. Members involvement is important to this process and the ClubSAFE risk management programme, which is free to ClubPM policyholders, recognises this.
Managing director, Paul Tasker, says: “Policyholders are expected to demonstrate good standards of management and housekeeping and a commitment to a continual improvement programme as identified by our risk mangers. In recognition of this, our policy contains wide cover and is extremely competitive.”
It includes personal loss of licence cover, low excess, discounted rates and offers 15 per cent commission to BIBA members. It will be updated as new regulation, such as the smoking ban, becomes effective. ClubSAFE risk managers can also advise policyholders regarding the planning rules and insurance requirements for outside smoking shelters and the necessity for the correct display of no smoking signage.
Towing the line
Caravan insurance is a niche cover and while not necessarily hard to place, many brokers tend to sell it on an ‘as and when’ basis. But there is significant untapped potential in this market. Statistics for 2003 show there were more than 800,000 caravans in use, and in 2005 nearly 32,000 new ones were registered.
Caravan insurance is not compulsory, so many of these are not insured. But unlike motor cover, for those who do choose to buy cover, it is less likely they will shop around. There are good opportunities for cross selling here.
More brokers are looking to concentrate on their core business while offering customers a broad range of insurances, so wholesale broking is a natural route for caravan products.
Wholesale broker K Drewe offers underwriting expertise, strong relationships with insurers, flexibility, personal service and service excellence for products which can have modest average premiums – as little as £200 to £250 annually. Although the company has many existing relationships in the brokers market, it recognised the opportunities available by working alongside BIBA and developed this product exclusively for members. The aim is to give them the opportunity of tapping into this profitable and rapidly growing area of business.
K Drewe Insurance Brokers were established in 1956 and is one of the UK’s largest providers of caravan insurance. The current managing director, Ian Drewe, is the third generation of the family to head the business. Key benefits of the scheme include:
• Robust and easy to use web-based process for all transactions – new business, mid-term adjustments and renewals
• No minimum level of support
• Available to all members, including Northern Ireland
• BIBA-exclusive no claims bonus scale
• New for old cover up to 10 years
• Quality product with value for money premiums and flexibility
• 16 per cent commission on new business and renewals
• expert back-up from the highly experienced administrators
• personalised in-house claims service, using only established relationships with specialist suppliers – claims settled efficiently and sympathetically
• provides contract certainty
• A-rated security.
Putting payment protection insurance back on track
The FSA has recognised that payment protection insurance can be a valuable product, but cover needs to be of food quality and sold correctly.
To encourage more brokers to include payment protection insurance within their portfolios, BIBA has linked up with specialist British Insurance to launch a series of products with enhanced benefits, a more competitive rating structure and improved commissions.
The enhanced loan, income and mortgage payment protection insurance products offer greater benefits to consumers, including partial cover on often-excluded stress, back-related and pre-existing conditions and lower premiums. The exclusion relating to AIDS has also been removed.
There is no doubt that the fact some providers have been challenged by the regulator, and the media, and this has shaken consumer confidence. The solution is to be advised by a broker and these products are the right tools to do this. There are opportunities to seize market share.
It is widely-recognised that compliance and marketing are the main hurdles for brokers selling payment protection insurance, so British Insurance will be offering training and marketing support. Managing director Simon Burgess says: “We will give brokers and their clients whatever level of support they require, from material and web links to telephone and email.”
A direct mail and email campaign will also take place later this month and members who express an interest in selling payment protection insurance can obtain an agent pack with web links and supplies of client brochures.
