Sarah Hefford – Experts in providing value enhancing insurance propositions and specialist claims management to brokers and intermediaries

IPID’s: have you done yours?

Sarah Hefford — Tue, 16 Jan 2018 11:03:21 +0000

Background The European Union Insurance Distribution Directive (IDD) replaces the Insurance Mediation Directive (IMD). It aims to enhance consumer protection when buying insurance (including non-investment insurance, life insurance and insurance-based investment products) and to support competition between insurance distributors by creating a level playing field. The Insurance Distribution Directive (IDD) was due to come into force on 23 February 2018 although the FCA released a statement on 21st December 2017 regarding the European Commission’s announcement of a proposal to push back the application date of the Insurance Distribution Directive (IDD) by seven months to 1 October 2018, following requests from the European Parliament and Member States for a postponement. Delay or no delay, we all need to be up to speed on what the new directive entails, in particular regarding the requirement for the new Insurance Product Information Document (IPID). What does the new directive say? The IDD introduces enhanced requirements around information and conduct of business. These include: Additional knowledge and competency requirements for distributors Product oversight and governance requirements Disclosures around bundling of products Additional disclosure requirements for insurance-based investment products Mandated remuneration disclosures; And finally, one of the big changes is the need to produce the new Insurance Product Information Document (IPID) for non-life products. The IPID will be required to provide consumers with standard information for a policy, similar to a policy summary, prior to sale by 23 February 2018. What is the IPID and what should it contain? One of the IDD requirements is that the customer is given information in a standardised format, to enable them to make an informed decision about a non-life insurance product before they buy it. The manufacturer of the insurance product is responsible for producing the IPID. Following consumer testing, European Insurance and Occupational Pensions Authority (EIOPA) developed draft Implementing Technical Standards (ITS) on a standardised presentation format for the IPID, which were submitted to the European Commission on 7 February 2017. These draft ITS have since been incorporated in Commission Implementing Regulation (EU) 2017/1469 of 11 August 2017 laying down a standardised presentation format for the IPID. We’ve summarised what you need to include in your IPID; Title: the document must be titled ‘Insurance Product Information Document’. Name and company logo: it needs to clearly state the name of the manufacturer of the non-life insurance product, the Member State where the manufacturer is registered, its regulatory status and authorisation number; the company logo may also appear. Reference to complete pre-contractual and contractual information: it must make it clear that complete pre-contractual and contractual information about the product is provided to the customer in other documents. Length: the document should cover two sides of A4-sized paper when printed; in exceptional circumstances (which will need to be evidenced) it can run to a maximum of three. Presentation and order of content: the document must follow a standardised presentation format. The regulation details prescriptive requirements around font size; the sections to include (and their length and order); the way that information is set out; and specific rules for documents presented digitally. Language: the insurance product information document must be drafted in plain language and focus on the key information the customer needs to make an informed decision. Headings: the directive stipulates set headings, along with the information that needs to sit under each one. Use of icons: set icons need to be used that ‘visually represent the content of the respective section heading’. The regulations dictate the icons to use for each area of the report, along with their colours. EIOPA has worked with the European Commission to develop an editable version of the IPID template in all official languages of the EU where you can download the template and icons. Further information: Member States (including the UK) will still be required to transpose the IDD into national law by the original date. However, under the current proposals, firms will not be required to comply with the IDD until 1 October 2018. The European Parliament and the Council will need to agree and confirm the new application date in an accelerated legislative procedure. Sources: EIOPA https://eiopa.europa.eu/ EIOPA is an independent advisory body to the European Commission, the European Parliament and the Council of the European Union. It is one of the EU Agencies carrying out specific legal, technical or scientific tasks and giving evidence-based advice to help shape informed policies and laws at the EU and national level. FCA https://www.fca.org.uk/

Keeping you safely on the road during the winter months

Sarah Hefford — Mon, 08 Jan 2018 10:28:55 +0000

With storms Dylan and Eleanor hitting the country over the Christmas and New Year period, high winds, heavy rain, snow and ice meant drivers faced treacherous travel conditions on the roads and a rise in vehicles and their passengers being stranded at the roadside. These wintry conditions are set to stay and with the inevitable Storm Fionn brewing we’ve put together a helpful guide on preparing for your journey, driving safely in severe weather conditions and how to keep safe in the unfortunate event of a breakdown. It is always advisable to avoid driving in heavy rain, snow or ice if your journey is not necessary. However, if you do need to make the journey here are some tips you can follow to help stay safe on the road and reduce the risk of a breakdown; Driving in heavy rain Before you set off: expect delays and congestion, so give yourself more time. Check that your windscreen wipers are working and that your tyres have enough tread. Breakdowns: are more common in the rain as wet weather can cause engine problems and other technical issues, so make sure you have the appropriate level of motor breakdown cover and the details in the car. Ensure your mobile is fully charged. Stopping speeds: these will be impaired by at least double when the roads are wet so drive slowly and make sure you keep a safe distance from the car in front. Reduced visibility: keep your car heating on to prevent windows from misting up and watch out for spray from passing vehicles. Skidding on water: avoid braking or braking hard, ease off the accelerator and try to regain control. Driving through water: even just a few inches of water can cause serious damage to your car. Driving in snow and ice Before you set off: expect delays and congestion, so give yourself more time. Ensure you take food, water, blankets, a torch, a first aid kit, a fully charged phone, a shovel, jump leads and de-icer fluid. Make sure you have a full tank of fuel, and check the oil and other engine fluids. Make sure you clear all your windows as it’s illegal (and very unsafe) to drive if you can’t see out of all of them! Clear your bonnet and roof of snow too to avoid snow being blown onto your windscreen from your bonnet or worse sliding onto your windscreen from your roof under heavy braking. Plan your route: if possible try to stick to major roads which should have been gritted Keep your distance: it can take 10 times as long to come to a stop in icy conditions compared to normal. Remember to drive smoothly and don’t brake or accelerate harshly, otherwise your tyres will lose grip. If you do skid, don’t brake take your foot off the accelerator and let the car slow down itself. Be aware: keep distractions to a minimum, the radio turned off or down low so you can hear the difference if you hit an icy patch. If you do breakdown, follow these tips to keep you safe whilst you wait for breakdown assistance; Make sure you’re in a safe place. If possible, move your vehicle off the road (making sure you avoid soft verges). If you’re on a motorway try and turn off at the next exit, if this is not possible pull up onto the hard shoulder. Try and stop as far to the left as you can, with the wheels turned to the left. Put your hazard warning lights on and if it’s dark or foggy, keep your sidelights on too. Stay well away from moving traffic. It’s usually safest to get out of your car (using the doors facing away from passing traffic) and wait behind a barrier. If you’re on a motorway, move up the bank if you can. Leave animals in the car. If you have a reflective jacket, wear it so you are other drivers can see you. If it’s safe to do so on the road you are on, put a warning triangle at least 45m (50 yards) behind your vehicle but it’s not safe to put a warning triangle on the hard shoulder if you’re on a motorway. Call your breakdown company, even attempting a simple repair especially if you are on a motorway could be extremely dangerous. Have your motor breakdown policy details ready with your location and any other information which may be relevant. If you’re on a motorway and don’t have a mobile or its battery is drained, there are free emergency phones that will connect you straight to the police or the Highways Agency these are located on your side of the carriageway at one-mile intervals. Follow the arrows on the posts keeping to the back of the hard shoulder. Always face the traffic when you speak on the phone. Give as many details as you can – including your location – and inform the Highways Agency or police if you are a vulnerable motorist such as disabled, travelling alone, older, or with small children. If you have reason to feel at risk from another person whilst waiting, get into the vehicle – from the left-hand side – and lock all the doors and if necessary call the police.

Driving in France this summer? Things you need to know before you go.

Sarah Hefford — Wed, 03 May 2017 10:58:59 +0000

With the holiday season nearly upon us, now is a good time to brush up on European Motoring requirements so you are fully prepared for a stress free trip. We’ve created a handy checklist with particular focus on France as the majority of driving trips to Europe will involve some driving in France. On the spot fines can be issued on the roadside and need to be paid immediately to the arresting officer in the local currency and it’s worth remembering that credit cards or travellers cheques are not accepted. Satnav and speed camera alerts Carrying or using a speed camera detector in France is a big no no, the law was changed in 2012 to include satnav and any GPS based systems so don’t forget to disable speed camera alerts. Fines up to €1,500 could be issued or you could even have your vehicle taken away. Headphones and headsets This includes any device attached to your ear used for phone calls or listening to music. However, motorcyclists are permitted to use integrated systems or Bluetooth in a helmet. Breathalysers Whilst carrying a breathalyser is a legal requirement, currently there is no fine as the authorities have acknowledged issues with the supply of suitable breathalysers. The breathalyser must be unused and show the French certification mark NF. It has to be in date too, single-use breathalysers usually expire after 12 months so it’s worth checking ones bought and unused from last years trip. It’s worth noting that the drink drive limit for new drivers (less than 3 years) has gone down from 0.05% to 0.02%. Low emission zones Low Emission Zones in Paris, Lyon and Grenoble affect UK-registered vehicles from 1 April 2017 and vehicles in restricted areas now have to display a sticker – CRIT’Air, Air quality Certificate. Failure to purchase and display the vignette can result in a fine between €68 and €135. There are six different types of sticker and the sticker required depends on the emissions of the vehicle. You can purchase an official sticker before you go for €3.70. For up-to-date information on low emission zones for Europe visit Urban Access Regulations in Europe GB Sticker Unless you have a new style EU Number plate with the GB and the Euro flag on it, a GB plate must be displayed on the rear of your vehicle, caravan or trailer in both France and Spain. Although if you read the French regulations very carefully you will see that an EU Number plate is not in fact the right size specified as they are not big enough. Headlamp beam adaptors Headlamp adjustment is mandatory in both France and Spain and failure to adapt your headlamps whilst driving both in the day and at night time will make your vehicle unfit for use on the road and could invalidate your motor insurance. Warning Triangle In the event of a breakdown or emergency whilst on the road, drivers need to be able to give advance warning of a hazard on the road. Hazard warning lights are NOT always sufficient. In Spain, 1 triangle required is for non-Spanish registered vehicles. In France, 1 triangle is required for all vehicles in France and failure to do so can carry a fine of up to €135. Spare Bulbs Carrying spare headlamp bulbs is recommended in France and Spain as drivers need to be able to replace any blown exterior lights and failure to do so can carry a fine of up to €80. Reflective Vest Reflective vests for drivers are compulsory in Spain and France and motoring law in an increasing number of other European Countries now requires all vehicles, including motorcycles to carry a reflective vest for drivers AND passengers, for use in the event of breakdowns or emergencies. These need to be stored inside the cabin of the car (not the boot as you must put it on before you get out!). If you are seen by the police stood outside your vehicle trying to find your vest in your boot it is very likely you will be issued with a fine. Documents You Need to Take When travelling abroad you will naturally take your passport but as you are driving your own car you will need to take a few other things with you Driving License Proof of Ownership (V5 Log book) Insurance Documents (Some fully comprehensive insurance policies revert to 3rd party cover whilst driving abroad so it is worth double checking with your insurance company if you will be fully covered while driving in Europe.) M.O.T. (If your car is over 3 years old) Finally, for additional peace of mind and to avoid costly towing fees we recommend that you have European breakdown cover in place before driving to the continent. You may already have breakdown cover in the UK but it may not cover you whilst driving in Europe.

Motor Industry News: Rapid Increase in Electric Car Sales in UK

Sarah Hefford — Wed, 08 Jun 2016 13:35:19 +0000

Monthly figures released by Society of Motor Manufacturers and Traders ( SMMT) reveal that electric car sales in the UK have seen a dramatic increase since 2014. While only around 500 electric cars were registered per month during the first half of 2014, this has now risen to an average of around 2,400 per month during 2015 – with 2016 significantly outperforming the previous year so far. As a percentage of new car registrations, electric cars now represent around 1.4% of the total new car market in the UK. In 2013, plug-in car new registrations increased from 3,500 to nearly 61,000 at the start of May 2016. The UK has seen a large increase in the number of electric and plug-in hybrid models available in the UK with each of the 10 best-selling brands in the UK now offering an Electric Vehicle (EV) as part of their model range. As a result of sustained government and private investment, the UK network of EV charging points has increased from a few hundred in 2011 to almost 4000 charging locations, 6000 charging devices and over 10,000 connectors by April 2016. The proportion of charger types has also changed significantly during that time with a rise in high power (rapid) units being installed across the UK. Plug-in hybrids have taken an increasing share of the plug-in car market, a trend that only looks set to continue with more models confirmed to go on sale in the UK within the next year. A key indicator as to the strength of the UK market for electric vehicles is the number of segments covered by the EV models currently available. While the main nine EVs available in 2011 covered four body styles – city cars, small family cars, small vans and sports coupés – the 39 electric cars and vans available in 2016 now include superminis, large family cars, hatchbacks, estates, SUVs, executive models, and medium-sized vans. Peter Powell, MD at Complectus comments on these market changes “We recognise the need to review our range of products on offer to the motor manufacturer and insurance industries to reflect the changing and specific requirements of the EV market. For example our GAP Insurance covers separately leased batteries together with the EV and our motor breakdown schemes can now also support drivers of electric vehicles where they have run out of charge”.

French Industrial Action Fuel Shortage

Sarah Hefford — Fri, 27 May 2016 17:56:11 +0000

Following industrial action (blockades of fuel depots), fuel purchasing restrictions have been put in place by local authorities in some parts of France. In certain areas our customers may not be able to fill up fuel containers and fuel rationing may be imposed. Some petrol stations may have run out of some types of fuel, which are likely to become more prevalent over the Bank Holiday weekend. The Mon-essence.fr website has produced a map, developed from data supplied by users of its mobile app, to help motorists identify petrol stations where fuel is not available. Before travelling to France we would recommend your customers to: Check all relevant websites Seek alternative means of transport if possible Look at alternative routes to their destination, if this involves travelling through, or to, the south of France Leave the UK with a full tank of fuel Take plenty of food and water as a precaution Adhere to their transport operator’s terms and conditions for the carriage of fuel containers During the period of disruption our breakdown partner AXA Assistance will: Continue to provide a breakdown service in France, where possible to do so, however, a proportion of our operators will be affected by fuel shortages themselves and may not be able to respond Where vehicles have run out of fuel, we will endeavour to take them to the nearest garage, but cannot guarantee it will have a supply of fuel We will not repatriate abandoned vehicles due to fuel starvation, where the driver/passengers have returned to the UK. Please note customers may experience severe delays in attendance We will be monitoring the situation over the weekend and provide further updates should the situation change. For the latest Government advice on the dispute, please refer to www.fcowidget.com

Car dealers to implement new FCA GAP Insurance sale rules by September 2015

Sarah Hefford — Wed, 24 Jun 2015 12:54:35 +0000

Earlier this month, the Financial Conduct Authority (FCA) released the final findings on the general insurance market study on GAP sale competition, together with rules. The deadline remains 1st September when the new rules will come into force. Key points in the FCA’s competition remedy Deferral period: four days for new and used vehicles The FCA considers the proposal of four days in total, including the option to conclude the day after (the start of the deferral period) for customer-initiated sales, should be sufficient and “strikes the right balance”. This deferral period cannot be waived even if a customer immediately purchases GAP after being given the prescribed information. The FCA added repeat customers “can also benefit from shopping around” at this stage. The prescribed information must include information on how the deferred opt-in works, including the date the prescribed information was provided. Prescribed information This remains as the FCA has previously proposed: 1. total premium of the add-on GAP policy 2. significant features and benefits, exclusions or limitations and cross-references to relevant policy document provisions 3. that GAP insurance is sold by other distributors 4. whether the policy is optional 5. when the policy can be concluded by the firm, “including the date on which the prescribed information was provided so that it is clear to the customer when the ‘clock’ started”. GAP insurance on credit The new rules are not incompatible with the Consumer Credit Sourcebook (CONC) or Consumer Credit Act and as such do not prevent consumers buying GAP on credit, despite opposition that two credit checks would be needed. Implementation date On the opposition to the in-force date of September 1, the FCA said that since it had been told 22% of vehicle sales took place in this month in 2014, “it is important that the remedy should apply from September, so that the increased number of customers purchasing vehicles will benefit from the remedy”. Implementation costs The FCA has upped its cost estimate from £5m to £20m, said by the FCA to be within a “reasonable range and do not change our conclusion that the policy generates significant and ongoing net benefits for consumers”, estimated at £31m to £54m annually. Monitoring of GAP sales’ volumes The FCA expects firms to set their own tolerances and expectations about what would be high levels of sales and what would trigger a review i.e. if a dealership or staff member’s sales were “outside the normal range”. The FCA’s ‘GAP: competition remedy’ statement concludes: “We expect to see better consumer outcomes from more informed purchasing decisions and improved competition between add-on and standalone distribution channel, countering a “point-of-sales advantage” for dealers and the lack of transparency.

FCA to ban “opt out selling” of add-on insurance

Sarah Hefford — Tue, 07 Apr 2015 10:27:12 +0000

The Financial Conduct Authority (FCA) have announced their planned proposals to ban the opt-out approach of selling add-on insurance products of regulated or unregulated products offered alongside financial primary products. These add-on products include legal expenses sold with home insurance, motor breakdown or key insurance cover sold alongside motor insurance, or protection cover when taking out a mortgage or credit card. The FCA has conducted a market study of insurance add-ons and how they are sold and their research highlighted that consumers are not always aware they have bought an add-on. The FCA has concerns that the practice of defaulting consumers into buying a product which they then have to opt out of, for example by using pre-ticked boxes to sell the consumer add-on insurance, sometimes means consumers purchasing an insurance product they may not need. The industry will be consulted on the FCA proposals, which also include the introduction of further guidance for companies so they can provide consumers the appropriate information about add-on insurance products at the right time in the sales process. Christopher Woolard, FCA director of strategy and competition, said in a statement that: “This is about ensuring consumers can make the right decision on what add-on insurance they do or don’t need. Forgetting to un-tick a box at the end of a purchase is not making an informed choice. “These proposals will mean that consumers will be in a better position to decide what they want and consider the options available to them. Fewer consumers will end up with products they didn’t want or don’t even know they own.” Key recommendations by the FCA; Consumers to be provided with more appropriate and timely information that will allow them to make an informed choice on what, if any add-on products they need, and to identify the best package. Introduction of the most common add-ons to consumers earlier in the sales process and make it easier to compare packages of the primary product and add-ons. Annual price of add-ons provided to consumers rather than relying on monthly figures so that overall price to be paid is easily understood.

FOS report GAP Insurance Complaints down 5%

Sarah Hefford — Tue, 24 Mar 2015 14:03:25 +0000

From April to December 2014, 164 complaints were made to the ombudsman, down 5% compared with the same period in 2013. According to the ombudsman, the most common theme of customer complaints is confusion around the different types of GAP products that are sold, under what circumstances policies would pay out and any notable exclusion’s in the policy. Following the latest Financial Ombudsman Service data showing a drop in GAP insurance complaints; the ombudsman say more could be avoided with improved dealer / customer communication. As the FCA considers its final remedies for the insurance add-ons market, taking the time to fully explain what policies cover, as well as the benefits of each product, will help boost transparency and customer satisfaction. Head of outreach at the ombudsman Caroline Wells said: “We are urging dealers to take a little extra time to explain the product at the point of sale, or at the point of claim. Often it’s simply a question of explaining something in plain English, why exclusion is relevant in a policy for example. But, too often the people who contact us talk about a ‘computer says no’ approach, and that leads to understandable concern on the part of the policy holder.” Insurance add-ons are an important income stream for dealers and latest ombudsman figures show that the vast majority are selling responsibly. However, dealers need to ensure their GAP insurance sales processes are fit for purpose and good communication needs to be at the heart of every transaction, particularly ahead of planned FCA rule changes expected later this year. The FCA’s consultation on proposed remedies for the sale of GAP insurance and add-ons market closed in March. The regulator is set to announce its final remedies in June, ahead of implementation in September 2015.

Complectus provide extra protection to motorcyclists with their Helmet & Leather Insurance

Sarah Hefford — Tue, 24 Mar 2015 11:47:59 +0000

Complectus Ltd has developed a Helmet & Leather Insurance policy to further enhance their suite of ancillary insurance products. Helmet & Leather Insurance has been designed to provide protection for motorcycle clothing should they be damaged beyond repair if a motorcyclist is involved in a road traffic accident. Peter Powell, Managing Director at Complectus Ltd said “The reality is that navigating our roads can sometimes be dangerous so it is essential for motorcyclists to have the appropriate protective clothing, but the costs of getting the right gear can be expensive. Helmet & Leather Insurance addresses this by providing extra peace of mind to motorcyclists that their investment into quality safety equipment is covered”. The helmet & leather insurance policy covers up to £1,000 for the repair or replacement of damaged motorcycle clothing in the event of a road traffic accident. It is a perfect add-on to a motorcycle insurance policy or even an embedded benefit to offer customers reassurance that they are fully covered when they are on the road. Please contact us for more information on Helmet & Leather Insurance or developing your portfolio of automotive insurance add-ons’ or standalone products Complectus Ltd. is an appointed representative of AXA Assistance (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Specialising in the wholesale distribution of insurance products to support our network of regulated insurance brokers, motor retailers and motor vehicle manufacturers.

Complectus offer Total Loss Protection cover to address shortfall in motor write-off claims pay-outs

Sarah Hefford — Tue, 03 Mar 2015 17:22:12 +0000

Complectus Ltd are pleased to offer Total Loss Protection insurance to enhance their suite of added value insurance products. Total Loss Protection not only addresses delays and financial losses associated with motor claim write-offs, it also responds to the call for add-on products to offer complete transparency and be truly customer centric. In the event of a total loss claim on the insured vehicle, Complectus Ltd.’s Total Loss Protection policy will pay out up to 20% of the underlying motor insurer’s final settlement figure, enabling the customer to purchase a similar vehicle at dealership retail cost. It also includes a contribution to the insured’s further transportation costs such as hiring a vehicle during the settlement period. A claim pay out on a total write-off loss can be a time consuming process and is unlikely to fully cover the retail cost for an equivalent replacement vehicle or the costs of travel alternatives a claimant could face. The Total Loss Protection product has been is designed to cover this financial loss, as well as helping to remove the associated hassle and inconvenience this causes. Peter Powell, Managing Director at Complectus Ltd said “We are always looking to bring new and relevant add-on products to our partners to further enhance our suite of ancillary insurance products. Our Total Loss Protection cover not only responds to customer need but addresses the financial shortfall often incurred by the customer” Total Loss Protection is available for private motor, commercial vehicles and motorcycles up to 10 years old. Contact us for more information on Total Loss Protection or developing your portfolio of automotive insurance add-ons’ or standalone products Notes: Cover is available for private vehicles in the UK up to 10 years of age which are covered by a comprehensive or third party fire and theft motor insurance policy. The policy is provided on an annual basis with a maximum of £12,000 for the policy year. Complectus Ltd. is an appointed representative of AXA Assistance (UK) Limited which is authorised and regulated by the Financial Conduct Authority. Specialising in the wholesale distribution of insurance products to support our network of regulated insurance brokers, motor retailers and motor vehicle manufacturers.