welfare at risk: more than pay-outs: how brokers could be your … · 2015-12-23 · more than...

Balancing actindustry experts advise on the risks worth taking P012

Challenging the claims culture:how the government is changing insurance P006

Welfare at risk: why charities need to seek specialist help P004

the human touCh: how brokers could be your best friend P010

more than pay-outs: what else can you get with your policy? P008

insuranCe Works

puBlisher: Bradley Scheffer, [email protected] • eDitor: Anthony Wilks, [email protected] DireCtor: Andy Sweetman, [email protected] • proJeCt manaGer: Sophie Sweatman, [email protected] • proDuCtion manaGer: Sarah Ostheimer, [email protected]

for more information on any of our supplements please contact us by:T: 020 8349 4363 • W: www.lyonsdown.co.uk • E: [email protected]

LyOnSdOWn MediA GrOuP, 22-23 ArcAdiA Avenue LOndOn n3 2Ju

recessionary pressures mean that many consumers and businesses are tightening their belts. Worryingly, in their attempts to save money they could be exposing themselves to financial risk by cancelling or reducing

important areas of insurance cover protecting them in the event of fire, flood, theft or an accident, according to research from the British insurance Brokers’ Association (BiBA).

BiBA understands that existing economic conditions make it difficult but customers should be careful not to leave themselves unprotected – it could be a false economy. Homeowners, motorists and business owners need to think hard about the cover they require and to seek professional advice from an insurance broker to avoid serious financial consequences.

nothing beats professional insurance advice. A professional broker will take time to understand your insurance needs and search for the most appropriate policy for you at the right price. They will explain any professional advice given – clearly and honestly. They will also ensure that you understand what is, and is not, covered by your policy. The broker will also help with paperwork and clearly state the costs of your policy, including any fees charged.

A broker can also be invaluable when a claim occurs. Our research demonstrates that brokers can achieve fairer claims payments for customers, in some cases negotiating up to a 20 per cent uplift in a payout from an insurer. This is achieved through their specialist knowledge, technical understanding and expertise in negotiations with insurers, something that is very difficult for individuals and businesses to do solo.

So if you are irritated by meerkats, talking phones and monosyllabic bulldogs why not get a trusted, professional adviser on your side and contact an insurance broker instead? you may find it the start of a beautiful relationship.

Eric Galbraith, CEO, British Insurance Brokers’ association (BiBa)

protection - a risky business

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foreword & news >>

Crack down on uninsured vehiclesuninsured vehicles will be found and the owner prosecuted under new plans to introduce an automatic comparison of the dvLA’s records with those on the insurance database. Any registered owner whose vehicle does not appear on the Motor insurance database (Mid) will receive a letter which sets out the steps to avoid fines, wheel clamping or court prosecution.

The new continuous insurance enforcement scheme, due to start in early 2011, will be supported through awareness and publicity. it is hoped that

the continuous insurance initiative, delivered by a partnership between the Motor insurers’ Bureau (MiB) and the dvLA, will significantly reduce the current levels of 1.5 million uninsured vehicles. This builds on existing initiatives by the insurance industry to support the police, who gained new powers in 2005 to seize vehicles used without insurance. Since then more than 700,000 uninsured vehicles have been seized.

uninsured drivers cost the industry £500 million annually, which translates to £30 for every

honest motorist. For more information about the new law visit www.direct.gov.uk/stayinsured.

Get insured, not clamped

Changes to insurance regulation

Bank of England: lead role

The Government has announced plans to restructure the way the insurance industry is regulated. The announcement in June confirmed that the current regulator, the Financial Services Authority, will cease to exist in its current form. in its place, three new bodies will be created, with the Bank of england (Boe) playing the lead role.

The Boe will take control of macro-prudential regulation and oversight of micro-prudential regulation, with an aim to

increase financial stability. A consultation has been launched by the Treasury to gather views on the reforms following the financial crisis that enveloped the uK and global banking system.

A new consumer Protection and Markets Authority will be created as a strong consumer voice and to maximise consumer protection and increase certainty and transparency for both consumers and businesses.

Find a broker with BiBA:T: 0870 950 1790 W: www.biba.org.uk

An independent supplement produced by Lyonsdown Media Group 003

<< news

The equality Act, introduced earlier this year, will make it easier for customers such as older travellers and younger drivers to find insurance cover. under the proposed legislation, insurance companies will be required to provide a relevant source of help if they decline to insure a person based on their age.

Graeme Trudgill, BiBA Technical and corporate Affairs executive, said: “This requirement, called signposting, will mean that customers will no longer be left feeling unwanted by a string of ‘no quotes’ but instead can find appropriate insurance more easily.” it is expected to help prevent customers from travelling uninsured, cancelling holidays or not driving because they believe that cover is unavailable. currently insurers do not have to help customers

to find alternative cover, but could soon have to refer them to a specialist broker or insurer who can provide cover, or point them towards a source that can help them to find a specialist.

This follows the government’s consultation on the equality Bill which looked at the fairness of calculating the cost and availability of insurance based on a range of factors including a customer’s age. it was determined that age is a key factor in insurance pricing and that reasonable differentiation should be allowed.

The government is now working with the insurance industry on a signposting steering group to finalise the way forward. One of the Treaury’s signposting solutions is BiBA, which can help customers with their insurance needs.

Law provides easier access to insurance

The cost of insurance is set to increase from 4th January 2011 following the government’s announcement in June’s emergency budget that insurance premium tax (iPT) will be increased.

The standard rate of

iPT, which is charged generally on motor, home and commercial policies, will increase from 5 to 6 per cent. The higher level for personal travel insurance will increase from 17.5 to 20 per cent, in line with the increase in value added tax (vAT).

There are concerns within the insurance

industry that the increase will serve only to add further financial pressure during the economic downturn and discourage individuals and small businesses from taking out adequate and appropriate insurance protection.

insurance tax rise

Small business could be discouraged

easier route to compen-sationindividuals who suffer an injury or disease caused in the workplace will have easier access to compensation through a new database that can indentify an employer’s or past employer’s insurer.

The database will become the central reference point to help individuals who have diseases such as asbestosis and whose employer is liable to pay compensation through their employers’ liability (eL) insurance policy.

it has been difficult for individuals to trace their past employers and their eL insurers due to a large number of mergers and business closures.

in April 2010 the insurance industry

announced that it would proactively establish the service in response to a consultation from the department for Work and Pensions to help customers. it is likely to launch in April 2011.

>>


Charity work >>

Many types of social welfare organisation have been affected by the recent

financial turmoil, from charities and not-for-profit to social enterprises. charities have faced an increased demand for services whilst they struggle to cope with declining income streams.

To protect the services delivered to beneficiaries many charities are looking for ways to cut costs while also increasing fundraising activity to sustain cash flow.

The charities commission recently advised all organisations to take a serious look at their financial health, direction and use of resources. Their recent document ’The Big Board Talk: the conversation all charities need to have’, highlights how restructuring can help by, among other things, increasing the pool of volunteers, re-negotiating and terminating contracts, changing the types of services offered to meet the new demand and making best use of property.

Whilst certainly helping charities to make improvements to the way they operate, these considerations have the potential to inadvertently

introduce new risks. One of the ways to address these risks is to consult an insurance broker who can not only help to identify all risks but can advise how to manage them appropriately. The British insurance Brokers Association has geographic lists of insurance brokers on their website www.biba.org.uk.

insurance brokers can visit clients to gain the fullest picture of their exposures. it’s not just about arranging an insurance policy. Once the risk exposures have been identified the first step is to advise how these risks can be minimised and managed before recommending which risks should be covered by appropriate insurance.

The charity commission also lists issues charities should consider and review in the current economic climate, such as their obligations as employers, the financial and reputational risks of being unable to meet terms of a contract, reviewing their performance as a trustee body and safeguards against fraud.

Again this highlights risks which need to be managed and may require relevant insurance cover. Aside from employers Liability and Motor insurance, which are compulsory covers, the risks a charity chooses to actually insure is down to personal choice. However it is a decision that should be made with professional advice. All organisations will have some additional liability exposure. unrecognised and ignored, these exposures could become very expensive and threaten the viability of the charity.

insurers also use their expertise to recommend improvements to reduce risk. Some provide access to specialist care consultancy services and risk surveyors. A few insurers align their whole business to social welfare to maximise expertise and service. Specialist products designed specifically for social welfare type organisations are available. value added services,

such as access to legal and public relations advice, are also included with some policies.

A quality broker and specialist insurer, both with insight of specific activities charities are involved with, will maintain a regular dialogue. Their advice and support will add value to the charity throughout the relationship; invaluable for charities in this difficult economic climate.

Increased risks for social welfare organisations

By Simon Fell, Underwriting Manager Markel (UK) Limited

Charities and other social enterprises should seek specialist advice to protect themselves against the effects of the economic downturn.

A quality broker and specialist insurer will provide advice and support which is invaluable for charities

If ignored, additional liability exposure could threaten the viability of a charity

A claim handled by Markel insurance shows how difficulties can arise when charities attempt to restructure to reduce overheads. A hostel promoted internally when a manager retired, thinking that the employee had the experience needed and it would save recruiting a replacement. unfortunately, the manager felt overburdened and requested a less onerous position or she would resign. There were no other positions available and the charity believed her to have resigned after her representative confirmed she had not changed her mind. A claim for unfair dismissal and disability discrimination followed, and Markel negotiated a settlement of £15,000.

Case notes >>


in the Community >>

Perennially labelled as a grudge purchase, most of us end up as consumers of multiple insurance products at some stage in our lives.

This has led to a mature and competitive marketplace which vies for our business at every turn. However, we rarely acknowledge the battles taking place in the corridors of power that can influence both how much we pay for our policies or the ways in which we can make a claim.

The coalition government has already made an impact; there are changes afoot such as the rise from 5 to 6 per cent on insurance Premium Tax (iPT) due in January 2011 costing the average motorist £6 a year according to the Association of British insurers. uK consumers can count themselves somewhat lucky though when comparing iPT here to Germany (19 per cent), or italy (21.25 per cent).

insurers lobbied hard against the government raising iPT, but in other circumstances they are much more aligned with the stance at Westminster. One such example is the review by Lord Justice Jackson of the rules surrounding how we bring a claim for damages, specifically in the area of personal injury. This has nothing to do with your rights as a first party, but if someone else hits your car or you have an accident at work then a no-win-no-fee action may no longer be available if number 10 gets its way.

At the heart of LJ Jackson’s proposals is the removal of ‘after the event’ insurance, which pays your costs if you lose and charges a premium to the other side who will owe you your costs, if you win. The new government

largely endorsed LJ Jackson’s proposals in July which means no-win-no-fee could soon be over, in favour of a new system that pays the claimant representative a portion of the damages received. it’s just one measure to encourage insurers to slow down ‘claims inflation’ which at the last industry wide count was rising at 7 per cent a year.

Meanwhile, events in Westminster could also affect our premiums for things like motor and household insurance. The Police reform and Social responsibility Bill announced in the Queen’s Speech aims to encourage greater community involvement in policing. Freddie McMahon of business consultancy Fusion experience, suggests this may find its way through to our premiums. “As the local community begins to influence local policing they will want to put pressure on insurers to show how crime has reduced,” he says.

The leafy neighbourhood of chorlton-cum Hardy in Manchester was recently labelled

the burglary capital of the uK and Lindsey Beveridge, who runs her conferencing business from home in chorlton hopes insurers see the Bill’s potential. “if this action had an impact and crime began to fall, i would like to see that translate into community action that pressurised insurers to look at their premiums for cars and houses in supposedly ‘higher risk’ postcodes.”

emma Banks, spokesperson from insurance company Lv= says the Bill has been well received. “depending on how significant the crime rate is in your local area, a fall will mean that over time you will pay less for your home contents insurance. The facts would need to be borne out by a reduction in claims over a period of around 12 months, although home insurers regularly amend premiums to reflect risk.”

With insurance premiums recently highlighted by the Office for national Statistics as one of the biggest inflationary factors in the consumer Prices index, homeowners like Lindsey could be dusting off their neighbourhood Watch stickers very soon.

Crunch time for claims culture

By Ralph Savage

A number of government measures will change how you buy, and claim, on your insurance.

Greater community involvement in policing could filter through to insurance premiums

Local policing measures couldhelp reduce insurance premiums


added extras >>

nowadays insurance is a lot more than just money being paid for a claim – the insurance industry

proactively seeks to forestall distress and disruption by trying to prevent or respond to serious events.

For instance, its own funded vehicle research centre at Thatcham has come up with a tracking system which dramatically shortens the time for the police to be alerted when a car is stolen using the keys of the driver, and for the car to be remotely prevented from restarting at the request of a police officer when it has stopped within his line of sight.

As Thatcham’s Martyn randle says: “This takes away a lot of the anguish from the owner when his car is driven away – he can have his car recovered on average within two hours.”

For comprehensive risk management, some insurers such as Aviva will produce masses of information on-screen for businesses, have helplines and even provide their own training courses. But tailored and practical risk management assistance is often left to the broker.

With brokers risk management advice is usually free because it is an integral part of organising cover for the risk. “risk management is something we use as a tool to get under the skin of our clients,” says chris Hutchins of Brett & randall. “We spend a substantial time on site with clients so together we can identify risks.” He once spent the

night working at a parcel delivery company’s hub to see what risks could occur, e.g. on the loading dock.

When severe damage or disruption to a business occurs, insurers may use loss adjusters to get the claimant back to the

pre-existing situation as soon as possible – which is in everyone’s interests.

Kevin Wood, chief technical officer at professional claims company Merlin, observes: “We are there to help the policyholder through the process of claiming, whether it’s a building, contents or an accident. We help manage

the issues.” These include finding alternative accommodation when there is flooding and making sure the damage response companies treat traumatised people with consideration.

Planning for business continuity is a vital necessity because firms need to be up and running almost seamlessly after an extreme event. insurance will only cover set limits of downtime.

chris Ball of Perkins Slade explains: “The indemnity period for business interruption cover may be 12 months, but any sizeable business would be doing very well to retool from scratch and get going with customers within 12 months. you really need to look at 18 to 24 months.”

To address this problem for smaller office based firms, some insurers and brokers offer at no extra charge the benefit of full communications and iT replication in rentable emergency premises via firms like First recovery, which has a reservoir of over 500 furnished

properties. its boss, Paul Jackson, wants more insurance policyholders to get this service free: “it is an educational issue as it only costs the insurer £50 a policy.”

But communications and iT are only one aspect of business continuity. Andy White of Towergate says: “We have to understand what all the business processes are and try to get the client to look at what could go wrong with the business. We ask whether he has a business continuity plan and if so whether we can see it; whether it has been tested rather than gathering dust on the shelf.”

Aviva’s Alan Trueman agrees: “The existence of a good plan which is rehearsed or tested regularly demonstrates the business is making good contingency arrangements. We look favourably on a business in this position and take this into account when calculating the premium.”

more than just pay-outs

By Richard Blausten

Look carefully and you’ll find an increasing number of extra services attached to policies.

Risk management advice is usually free with brokers because it is an integral part of organising cover for the risk


<< proteCtion

There has always been fraudulent activity in insurance. Be it wilfully not disclosing information when buying a policy, or exaggerating or falsifying a claim, levels of fraud have grown in some quarters to become systematic, almost epidemic. regrettably few people consider insurance fraud a crime, when in fact it is a criminal offence

that can lead to imprisonment. So how does the industry feel

about this? insurance companies are taking an increasingly hard line against fraud in all forms, actively investigating and sharing information between them. The insurance Fraud Bureau has been set up to pool information and detect organised fraud.

new entrant to the market, Octagon insurance, has taken a more direct approach; it has brought an anti-fraud stance to the forefront of its business. clicking on the ‘Fighting Fraud’ box on its website’s home-page displays a clear statement on Octagon’s aims to root out potential fraud, passing on savings to honest customers. it even gives examples of real cases. The message is clear: potential fraudsters should not buy an Octagon policy.

Octagon’s actions go much further. every claim received is “washed through” netfoil, a specialist database created by law firm Hill dickinson’s fraud unit

that links over fifty million claims details from the largest fraud database in europe. details of any potential individual or organised fraud rings are then highlighted and investigated by Octagon’s fully trained fraud team, who involve investigators such as Questgates, experts in the process of cognitive statement taking (validating

statements from all parties), forensic engineers and surveillance teams. claims are immediately placed in the hands of their solicitors who pursue all lines of action as evidence of any fraud emerges.

This has already brought immediate successes. Two recent cases can be seen on Octagon’s website where fraud was identified, claims rejected and prosecutions pursued.

For more information visit www.octagoninsurance.com

Fighting fraud the smart way

By Mark Huxley, Insurance Specialist, Lamb CMC Limited.

insurance companies are using increasingly sophisticated measures to detect fraud.

Coping with new risks requires personal attention

octagon aims to root out potential fraud, passing on savings to honest customers

Business risks have changed significantly in the past ten years. When once it may have been employee issues, business continuity, and health and safety, now businesses face environmental liability, new regulations and legislation and the growing threat of cybercrime and fraud, which, according to a survey by the Federation of Small Businesses, now cost their members up to £5,000

a year.Managing business

risks, old and new, is what brokers do best. Getting closer to their SMe customers helps them become trusted business consultants in arranging the right cover at the right price rather than a bundle of unrelated products.

As the largest provider of insurance to the SMe community and partner of the Federation of Small

Businesses, Towergate is finely tuned to understand the risks businesses face. Or as Towergate’s chairman, Peter cullum puts it, “Our future is tied up with the health of our customers and, in the current climate,

managing risks will be the key to the survival of many SMes.”

Towergate brokers have built up their customer base in the traditional manner. With 70 local offices it unites knowledge with clout and expertise in uK wide insurance markets.

But responding to customers is also dependent on building up expertise and professionalism, and again Towergate has led

the way in developing chartered status for brokers, with all its brokering offices across the country now chartered.

“Brokers will thrive by being inventive and progressive,” says Peter cullum. “And above all by responding to the constant pressure of change that our customers face.”

Towergate provides over 200 business and personal insurance products.

visit www.towergate.com, or for friendly advice, telephone: 0800 316 3625

Redefining the broker’s role

By Towergate Risk Solutions

Brokers will arrange the right cover at the right price


reaChing out >>

in January 2009, the popular tourist attraction of Spean Bridge Woollen Mill in Lochaber, Scotland, was stuck by a devastating

fire. The busy traffic route of the A82/86 nearby was closed all day as fire fighters battled the blaze, and the building was almost completely destroyed.

eric young, a director of rutterford Limited, an edinburgh based property company which owned the mill, was obviously grateful for the role played by the emergency services in tackling the inferno, however he reserved particular praise for the company’s insurance broker, clear insurance Management, after it spent six months dealing with his claim.

“Without a broker we would have been at a significant disadvantage,” said Mr young, who acknowledged the difficult position brokers can be in when trying to get claims settled. Brokers work on an agency basis with insurers, and are often incentivised by insurers to sell policies; therefore trying to increase the value of a claim can test that relationship.

“There was an effort by the insurer and its loss adjuster to settle the claim beneath the property’s reinstatement value and we were worried about facing some of the shortfall on what was a £1m claim,� explained Mr young. “However, the broker always looked after the customer despite knowing that this might affect their relationship with the insurer. i was very impressed.”

More and more, brokers are

striving to go that extra mile for their customer when a claim needs to be dealt with; not least in relation to the country’s prevalence for weather-borne natural disasters. in devastating events in places like Boscastle, Tewkesbury or cockermouth brokers played a vital link in the chain for homeowners and businesses whose properties had been damaged or destroyed.

However, in addition to advocacy in claims, brokers’ core strengths are in getting clients the best price and the most appropriate cover. One high street broker apparently stumbled upon multi-culturalism as a means of doing this and has never looked back.

“There are a total of 50 brokers speaking 22 different languages, based in 21 of our branches,” explains John Hooper, group managing director of franchise broking network coversure. “There’s often a big gap between a small business owner having good enough english to talk to

their customers and their ability to discuss something complex like insurance. From the personal perspective, if you are on the wrong side of a car crash it’s hard enough making a claim when you speak perfect english.”

coversure had no strategic goal to promote itself as the go-to place for customers and small businesses

for whom english is a second language, but the company is now winning plaudits for its approach which uses a simple ‘choose your language’ tab on its website home page. This then directs the enquiry to the branch where that language is spoken.

Oktay Gokyilidirim who runs a confectionary business called Sweetworld, in Haringey, north London, said; “i am of Turkish origin running a confectionary wholesale business. Whilst my day to day english is perfectly good, i was delighted to be able to discuss the complex issues around my business insurance with the Leyton branch in Turkish.”

Sunil Gadhia, chairman of the Asian Business Association at the London chamber of commerce and industry (Lcci), says coversure is getting the best out of its people: “in an ever-increasingly globalised economy businesses have been able to thrive because they have embraced the positive impact of migrant labour.”

Both of these tales seem to emphasise the fact that with all the efficiency in the world, help and advice can be priceless when it comes to buying, or claiming on your insurance.

Brokers striving for the human touch

By Ralph Savage

multilingual helplines are among the new services on offer to those who need more help.

One high street broker stumbled upon multi-culturalism as a means of securing the best cover


ConferenCe time >>

consumer choice can rarely be illustrated more obviously than by a product where the public is encouraged

to ‘shop around’ at every available opportunity. On a daily basis we are tempted by advertising to visit price comparison sites for our essential product needs; be they for motor, household, travel or increasingly, small business insurances.

Price and convenience are essentially the key to these messages and insurers continue to add ever more products online that can be bought through aggregation sites such as confused.com, Gocompare or Moneysupermarket. Such portals have come to dominate the way we shop for insurance online and Paul Wishman, ecommerce director at insurer Lv=, says this is often the best place to begin your search. “it has become essential when researching your household, motor or travel insurance online that you should try a price comparison site, they obviously enable you to compare policies and prices.”

The insider’s view...

By Ralph Savage

Ahead of this year’s Future of General insurance conference, what advice do industry bosses have for consumers, and how do they go about attracting our business?


<< ConferenCe time

priCe WarninGHowever, Wishman is not alone in warning consumers to be careful about what it is they are trying to protect. There is a consistent message from all insurers; do not focus purely on price. “For household, i would recommend you also try using one of the online contents calculators as it will help you work out what amount of contents cover you need and you won’t end up paying for cover you don’t need,” he says.

“it seems obvious, but think about the cover you need,” adds Perry Wilson, founder of insure and Go. “in relation to travel insurance, you should take a look at what you will be taking away with you and what you plan to do while you’re away. This will help guide you when looking at the policies available. For example many policies don’t cover the most basic of activities while others cover lots of adventure sports for free.”

Travel insurance was designed largely to provide medical benefits to holiday makers so that they will be properly cared for in the event that they are injured or fall ill while in a foreign country. Wilson explains this essential need has to be at the core of your decision to buy any travel insurance policy; the trick is then to look for add-ons that will provide you with the peace of mind so that delays or lost baggage won’t ruin your holiday.

“Be clear that the policy will provide you with the support you need should you require help in an emergency – for example a 24 hour medical helpline is essential,” he says, “most of all don’t choose your travel insurance based solely on price. The cheapest policies are less likely to provide extensive cover and could have high excesses so in the end you could find yourself out of pocket.”

GatherinG iDeasThe annual industry gathering at the Future of General insurance 2010 conference in november will see insure and Go’s founder alongside more than 40 other insurance company bosses hoping to share ideas and discuss how the industry has succeeded in the past 12 months or where it needs to do better. One of the key issues for Philippe Maso, chief executive of Axa insurance who will be a keynote speaker at the event, is to better anticipate customer needs.

He says consumers are right to expect more from the industry. “We are in a constantly changing environment where the quality of our customer experience is

measured by our policyholders against that which they encounter from the likes of Amazon, virgin and First direct,” he says. “in this environment we are always looking to be quicker, slicker and more responsive than we have ever been. innovation is key to this and has to be centred in our culture.”

keepinG paCeAs the man responsible for ecommerce at Lv=, Wishman observes how this sense of innovation is beginning to manifest itself in the services on offer from insurers. He believes insurers are taking steps to keep pace with modern consumer demands. “We are really aware of how consumers want to interact with us in a multi-channel world these days. Some insurers offer iphone apps which are free to download from the itunes store. These contain all your useful numbers in case of an emergency and if you are involved in an accident they enable you to directly send photos of any damage to your insurer - enabling your claim be settled as quickly as possible.”

With so much emphasis being placed on self-service when we deal with our insurance the idea that brokers still have a big part to play might be hard to believe. Barry Smith, chief executive of insurer Fortis uK, believes it is important to remind the public how brokers can offer the kind of assistance that is rarely found online. “With an industry that offers so much choice,

customers should shop around and ask for advice and information to find the most appropriate cover for their needs. Brokers offer a valuable and transparent service and can help customers find the right product for them,” he says.

innate tensionThe real moment of truth is at the point of claim,” declares the Fortis uK chief. “customers should expect and deserve the highest level of service at their time of need, and should look to providers who can deliver great service.”

Of course, demanding great service isn’t always straightforward given the fact that 99 per cent of the ‘service’ aspect of an insurance policy comes when we make a claim. in an ideal world, the customer relationship with an insurer might begin by claiming first on the policy and then paying for it afterwards.

Maso admits this innate tension is why insurers commit to the challenge. “Lifetime value and customer loyalty are fundamental challenges in our business. We sell annual contracts with renewal dates which are invitations to leave as well as renew. understanding the key loyalty drivers of our policyholders is hugely important and if we are successful in this through claims management, service delivery and price, we will enhance the underlying quality of our book. The end game is creating customer advocates rather than promiscuous transactors.”

insurers acknowledge that they are unlikely to be able to command the same kind of loyalty and warmth as that displayed by the sort of ‘fan’ consumers we are growing used to seeing alongside some brands. Those who camped outside the Apple flagship store in London when the iPad launched this summer would probably loathe to be aligned to most insurance brands. As a product, it is often seen as a grudge purchase and claiming on a policy normally coincides with difficult or even traumatic events like a car crash or a break in.

nevertheless, insurers’ efforts to attract our business will continue as they seek to persuade with ever more sophisticated messages that peace of mind can be achieved by buying their cover. The message from them is clear; you should do your best to make an informed decision by demanding the right cover with a level of service that matches your expectations.

some insurers offer iphone apps which are free to download from the itunes store.

insuranCe? >>

The internet is full of opportunities to compare insurance premiums, and you can now fill your iPhone with meerkats to your heart’s content. However, insurance companies are also using apps to provide new services to their customers.

Most common are car insurance apps, which allow you to submit claims on the spot with photos and descriptions of damage, locate the nearest car recovery service and other features. There are also home inventory apps which allow you to keep up-to-date details, photos and receipts of your possessions, and personal health apps to keep on top of what life insurance you need.

A free app which your phone will be grateful for is the unambiguously named ‘iPhone insurance App’, which will search the internet for the best iPhone insurance for you and your beloved toy.

One app sponsored by insurance company Legal & General hopes to keep you safe as well. The ‘Panic Alarm’ will release an “ear-shattering alarm” when activated and which, if allowed to continue, will automatically call a number of choice so that someone can hear what’s going on. Another insurance company, nationwide insurance, has sponsored an app that helps you to choose the safest car.

if you want to understand the world of insurance better, the ‘insurance Terms’ app will give you a complete glossary of insurance terms, though it’s perhaps more for the insurance professional. A rival app, ‘insurance Glossary’, also offers a free ‘Lite’ version for the more casual enthusiast.

Keep your household inventory on your iPhone


Cloud Cover >>

A summer event organiser who doesn’t insure against bad weather has to be certain

they can cope with any loss; otherwise they really do need insurance. But there can be all sorts of different reasons for delay, postponement or cancellation of outdoor events – whether it be a concert, festival, corporate hospitality event or charity function, risks related to the event can be diverse, so the insurance to cover them should be targeted and adequate. non-appearance of a key performer or big celebrity can wreck a concert or fete opening but practicality needs to prevail when deciding on the necessity for insurance. The fete can survive non-appearance because people will already have turned up and it will go ahead anyway.

The big rock concert where there have been huge ticket sales is another matter, thus event management specialist, nathan Homan of The rouge Partnership, will always advise on going that extra mile. “When you are spending several hundred thousand pounds on your headline act, it’s worth paying the premium to cover the cost of a chartered flight if there’s a transport strike,” he says. There are other risks too, such as theft and damage to equipment. Major event organisers with deep pockets won’t insure everything but most will be unable to take a big hit. even an elderly lady falling over because of some uneven ground at a village event can generate an expensive claim for the organiser.

Where food is served at a large gathering, food poisoning should be covered, especially where children are present. So public liability insurance is a must. Local authorities can insist on much higher sums insured than may be expected, thus this needs to be checked out. Mark clayton of broker Towergate coverex says the best way is for the organiser to sit down with their insurance broker and start with a blank piece of paper with both parties contributing.

The key to organising an outdoor event is risk assessment followed by risk management “We were once looking at a proposed motorbike riding display and immediately added extra safety space to guard against a rider having an accident ahd hitting someone,” he recounts.

Adherence to health and safety rules does limit risks, and so does the availability of first-aid facilities for larger events, but cutting out

avoidable risks makes the most sense. Bungee jumping is asking for trouble so find an alternative and avoid having a fire-eater performing in an open air leisure space surrounded by buildings.

it is the job of the broker to present the risk to the insurer who

will want to know that there is a proper awareness of all the risks involved and that they will be managed, so the more specialist the broker the better, particularly as a number of them have delegated authority from insurers. not that many insurers offer event insurance – surprisingly Britain’s biggest

insurer, Aviva, doesn’t.To keep premium costs down

and avoid exclusions, organisers need to buy their insurance early. As Lynn richards-cole of broker Perkins Slade explains: “insurers start to build in exclusions when something becomes an issue. Once it becomes a certainty then it will definitely be excluded.”

So cover risks like a transport strike well before they even appear on the horizon. underwriters aren’t stupid – they read the weather forecasts too. And if you are covering the non-appearance of a top performer or celebrity, remember that alcohol and drug abuse will be automatically excluded, as well as pre-existing medical conditions.

Playing with fire

By Richard Blausten

When organising an outdoor event, what are the risks worth taking?

When organising an outdoor event, what are the risks worth taking?By Richard Blausten

welfare at risk: more than pay-outs: how brokers could be your … · 2015-12-23 · more than...

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