The Mane News
The Sterling newsletter for professional intermediaries
Issue 14 • August 2009
Trade
Executive Plus
Protection
Anniversary
The Executive Plus anniversary
– further
incentives have been a great success
and the number of quotations received
over recent months has far exceeded
enhancements
our expectations.
We hope the lucky winners of the
magnums of champagne and case of
wine are enjoying their prizes.
Trade Protection is our flagship product for commercial SME business and already
Remember the benefits of insuring
includes a large selection of policy benefits. It was relaunched several years ago
your clients under the Executive Plus
and we are now looking to revamp it and improve it even more. Thanks to those of
product include:-
you who have let us have your ideas about cover improvements – we plan to include
many of these within the new contract. It’s not too late though to let us know what
- A free walk through validation by
further innovations you’d like to see.
Lyon and Turnbull
As a taster, we plan to include an engineering breakdown section, additional free
- Lorega claims concierge service
covers like lottery winner insurance, cover to comply with ‘green’ legislation and
both increased limits and wider cover generally. You will soon have a complete list
- An upgraded replacement of
of the changes and will be arranging detailed product briefings at launch events at
jewellery option
the beginning of next year. Initially the product will be available for new business
only but we will provide the additional benefits to existing policyholders very soon
- An excess waiver on claims above
afterwards.
£2500
The product relaunch will coincide with the roll out of our new IT system, Landscape,
- Interest free direct debits
to bring it in line with the system used by the Household department. We plan to
16 MARKE
send all commercial documentation electronically to y
T REPORT
ou for onward dispatch to your
Our intention is to launch further
clients. Printed documents will be available but we are considering making a small
initiatives during the autumn, watch out
charge (around £25) for this to discourage the practice and help the environment
for our email bulletin announcement .
– what do you think?
Please let us know what additional covers you’d like to see in the relaunched Trade
+
Protection policy and what you think about the moON ve towards the electronic deliv
ery
of documents by emailing me on
dsweeney@sterlinginsurancegroup.com.
David Sweeney
Director
High net worth
Commercial Risk Appetite
- Rating
We have taken a number of steps this year to widen and improve how we Executive Plus Birthday Cake
communicate our commercial offering to you and one of the most successful
has been the publication of our Commercial Risk Appetite document. If you have
not received your copy please let us know - contact your Regional Development
Manager or our commercial team on 0845 676 9991
(email
commercial@sterlinginsurancegroup.com)
David Sweeney, director, personal and
commercial insurances, for Sterling Insurance
explains why the insurance industry has a
responsibility to ensure that cover is sold for
the appropriate rate
The price
must be right
We announced we would increase
Before taking the decision , we consulted the soft market plus the investment-income-
premium rates for our high net
with brokers on a continual basis and the depleting downturn has resulted in a
worth clients at renewal from 1
decision to increase rates from January signifi cant decrease in profi tability.
was done with their full support. It seemed
January 2010. The increases will
January was the right time for corrective This situation is not a sustainable one for UK
be approximately 7.5 per cent on
action and our hope now is that others will insurers. Increasing access to online solutions
‘clean risks’, excluding any increases quickly follow to avert the collision course for commoditised products, and consumers’
applicable to add-on covers, with
the market is currently on with dissatisfi ed, desire to achieve lower premiums as a result
a further 3 per cent direct debit
claiming customers. of the credit crunch, whether by shopping
around or reducing cover has further
charge on selected products.
In fact our pricing over the last 24 months compounded the issue of premium levels.
has been increasing gradually. These
The increases are part of our sustainable
increases are necessary to ensure prices While all of this may be producing product
approach to pricing and follow the effects
remain correct in order to provide a service prices that suit purchaser’s wallets these are
of the prolonged soft market combined with
and products that perform in line with or not products that are guaranteed to fully
the downturn, which has created a pressing
beyond policyholders’ expectations. Proper meet their needs in the event of a claim.
need for pricing corrections. The increasing
pricing is the only way insurers can deliver
access to online solutions for commoditised
this and ensure customers are treated fairly Despite this, in the clamour for business, the
products and consumers’ desire to achieve
in the event of a claim. majority of UK general insurers’ advertising
lower premiums during the downturn has
actively encourages a bargain hunter
further compounded the issue of premium
Historically the insurance cycle has proven mentality among the insurance buying public.
levels. We believe other insurers must also
to be counter-cyclical to that of the wider This suits all involved up until the point
act to correct artifi cially low prices soon to
economy and yet here we are in a recession when a claim is made and the policyholder
avoid customer dissatisfaction with claims in
and a soft market. As a result, most insurers realises all too clearly why their policy was
the future.
would admit that the combined effect of so cheap. And there will be a reckoning for
Insurance Brokers’ Monthly February 2010
Focus 12-19 FEB.indd 5 1/2/10 13:45:01
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