Exciting market for schemes creativity
UK General CEO Peter Hubbard explains how the creativity coming into the schemes market will impact the whole industry.
At UK General we have over 500 schemes in place, targeting £100m of premium growth in the sector in the coming year. “It is a really exciting market,” said Hubbard. “It is the schemes market that is generating the creativity in the insurance market.”
UK General is starting to see people focused on pools and communities thinking about product design in a very different way to traditional mass market policy development.
“I think it is awesome,” said an upbeat Hubbard. “It will move over into the mass market.” As well as the new approaches to communities and product design he was clear that while the schemes market is driving innovation, commercial sense is still needed to make a scheme a success.
“Fundamentally people need to understand what customers they are trying to create a scheme for,” he detailed. “One of the weaknesses sometimes is people come up with a great idea and they don’t put the investment into working out what their customers really want. We see that happening quite regularly.”
In particular he warned against “finding a solution to a problem that does not exist” and that brokers should work with partner insurers to test, test and test again.
A provider can bring experience to the arrangement and knowledge of how to best test any plans for new launches or growth, but a partnership needs to be built on trust. “First and foremost it is a relationship,” said Hubbard.
Over half of UK Generals scheme broker partners have been loyal for over seven years, Peter said “common goals” is another essential element, along with precise knowledge of the numbers and route forward.
“The absolute key at the end of the day is about customer understanding,” he concluded. “It is fundamentally about have you got the right target customers and have you checked that they want the product? It is the only driver to whether you are going to sell the products in the first place.”