Getting a better deal for your customers in the event of insurer failure
Following the news on 22 July that Gibraltar-based insurer Enterprise has gone into liquidation, customers of the business need to seek new cover, to offset the risk of claims being unpaid.
While the insurance policies issued are still valid, it is as yet unclear whether the company’s assets will be sufficient to meet insurance claims in full, and it is also unclear whether the Financial Services Compensation Scheme (FSCS) will come into play.
Karen Beales, UK General’s managing director noted that, “at a time when the industry is under scrutiny following the collapse of an insurer such as Enterprise, our focus should be on protecting customers and we should endeavour to do everything possible to ensure they do not pay the price for events such as this.”
Brokers are at the heart of this process. Even though many customers would have been largely unaware that they were insured by Enterprise, it is brokers that hold these relationships, and they must react quickly to minimise any negative impact for their customers. This is essential if they wish to protect their clients and the reputation of their own business.
There is a two-fold course of action
- Ensure your customers have alternative cover in place immediately so that they don’t find themselves not covered as they believe they are.
- Ensure that in the longer term the customer has a policy with an insurer that you can be confident in.
How to get a better deal for your customers:
- Find an insurer that will provide low-cost, or in some cases cost-free cover for existing policies to ensure they are covered up to their current renewal date.
- Reduce risk by transferring your whole book of business. This will allow you to manage your accounts seamlessly from policy wordings, to claims and ultimately deliver a better customer service.
- Waiver your commission on the book transfer – this would have already been settled in the original policy purchase and it is your primary goal to protect customers and secure their cover.
- Find an insurer with a superior rating and that can support you in underwriting and compliance, and has open channels of communication with the Financial Conduct Authority.
It is essential for brokers to take a proactive approach in these uncertain circumstances and to do everything in their power to support their customers.
For further information on how UK General Insurance may be able to support you, contact us at email@example.com