14 MARKET REPORT ON
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mid net worth - profile
The panel approach adopted by Home & Legacy provides a more competitive approach and allows a full broking function. Managing director Barry O’Neill tells Brokers’ Monthly why it works
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Making mid and high net worth products accessible to as many brokers as possible has been the aim of Home & Legacy says managing director Barry O’Neill. The wholesaler has no minimum sum insured, it has linked up with various networks and also now has an online offering - all of which allow brokers to offer their clients mid net worth with the minimum of fuss.
Mr O’Neill joined Home & Legacy in 2007, a year after the company was purchased by insurer, Allianz. Previously, he had been head of private clients for broker Marsh. Home & Legacy differs from most other providers in the market because it operates a panel arrangement - where delegated authority is held for Allianz, Aviva, Chaucer, Fortis, Groupama, NIG and RSA, along with a range of specialist providers including Europ Assistance, Lawhield and First Assist. The company also seeks to provide added value through working with forensic security experts, SmartWater, to supply policyholders with the company’s Theft Prevention System, at no additional cost.
On the panel arrangement, Mr O’Neill says: “It’s something that has particular appeal
now that market conditions are challenging, since there is competition for each risk. We think we are probably able to offer some of the best terms in the market - and even if we are catering for the better off, that is not to say they want to pay over the odds,” he says. Cover is also Defaqto fi ve star rated.
Home & Legacy offers three levels of cover, called Principal, Prestige and Ultra. In terms of mid net worth, Mr O’Neill says brokers can start to talk to their clients about moving into this sector from a standard policy if they have as little as £40,000 of contents, with premiums starting from around £750. “That really is no different from many standard policies, but by talking to them about mid-net, there is far more fl exibility
“It very much depends on the client and it may ell be someone who is early into their career, but is poised to do well. It’s a cliché but the mid net worth client of today is often the high net worth client of tomorrow.”
Notably, Hiscox has pulled out of providing mid net worth cover through brokers and now only has an online offering. Mr O’Neill comments: “We see this as further opportunity for us. I am also convinced that a lot of people still want to deal with a broker. Particularly if they are better off, they may be uncertain about different
insurance policies and want guidance.”
Last year, Home & Legacy also launched a quote and buy facility for brokers which provides instant quotes for the Principal home product, aimed at clients with up to £150,000 contents and £600,000 in buildings cover. “It’s quick and effi cient and provides brokers with dynamic quotes.”
The facility also allows brokers to submit quotes for higher value covers underwritten by the Prestige and Ultra Home policies, guaranteeing a quicker response if the quote is referred.
Mr O’Neill comments: “The ability to provide new and existing brokers with instant quotes, confi rmation and policy documents online can help them win and retain more business in this competitive market.”
A further way of boosting distribution has been to link up with networks including Westinsure, Cobra and Key Choice. “There’s been growth in network membership and we’re fi nding business is growing considerably through this route - we’ve really enjoyed setting up these deals. We appreciate that many brokers want to specialise in commercial lines, but we offer an easy way for them to make sure that they are providing their clients with household cover that is appropriate.”
Insurance Brokers’ Monthly July/August 2010
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