Monday, February 8, 2021
Ancillary Product Competitiveness
Ancillary insurance products provide a means to create tailored propositions and incremental income generation for brokers and insurers, however the right distribution partner is critical to increase product penetration and profitability.
A leading personal lines insurance broker went to market to source a new partner for a portfolio of ancillary products. Price competitiveness, ease of implementation and customer value were top of their list of requirements. The right partner needed to be agile and able to supply a broad range of insurance cover with minimum disruption.
Technical Underwriting and Robust Product Governance
As both distributor and claims handler Coplus was able to provide competitive pricing without adversely impacting allowable loss ratios. By adopting a technical underwriting approach which is based on individual product performance data Coplus achieved favourable rates for the whole ancillary range which included Key Insurance, Replacement Vehicle, Excess Protection, Personal Accident, Home Emergency and Family Legal Expenses.
All of the schemes are backed by robust product governance and oversight with detailed monthly management information which supports the broker’s obligations under the Insurance Distribution Directive.
The schemes were available for implementation within the immediate timeframe required and mitigated the impact of rising prices. Securing more competitive rates for the whole product range has protected the broker’s position in the market and achieved substantial annual savings.
The broker has been able to consolidate its ancillary product supply under Coplus saving supplier management resource. Future product development can be undertaken in consultation with Coplus to ensure continued innovation and enhancements suited to the needs of the broker’s customers.