Legal Expenses
4 November 2008
Brokers looking for the perfect niche in the affinity market need look no further than Legal Expenses insurance according at Aurora’s Paul Evans. Today’s insurers are actively seeking commercial and personal lines schemes, believing that such facilities will combine competitive premiums with Legal Expenses cover in a wide variety of areas, ranging from general liability, professional indemnity, motor fleets and material damage to personal accident and travel insurance.
Insurance brokers need insurance products that make their affinity group schemes more attractive. Products that are affordable within the tight costs of a competitive membership. Products that are not a traditional insurance offering, not part of a class of insurance that consumers are made regularly aware of, but are compelling and essential today. Products that are simply administered with easy communication methods, without the need for survey or NCB proof. Finally; products that are supported by a claims service that is of value; even if the cover does not respond, for example a 24/7 legal advice helpline. So where can an insurance broker find such a product? Mr. Evans commented that “if ever there was the perfect niche market to give that advantage with an affinity group then Legal Expenses Insurance is the one to choose”.
William Legge, CEO of Aurora, has recently announced to the insurance market that Aurora has been provided with a facility by BRIT Syndicate at Lloyd’s of London. Worldwide business is written through Syndicate 2987. Brit Insurance competes with the major Lloyd’s syndicates and London Market Insurers for global business distributed into London by brokering firms. Lloyd’s has 62 syndicates of which Brit Insurance owns and manages, the ninth largest integrated capital provider and managing agent at Lloyd’s, with £525.0m of capacity for 2007, a 3.3% Lloyd’s market share. Mr. Legge said that “this facility is the first product we are offering to the market following our recent tribunualisation by Lloyd’s and is a forerunner of many products to follow”. Mr. Evans further commented on the benefit that “Having chosen, or already established a relationship with the affinity group you can then select the relevant Legal Expenses covers that the affinity group finds appropriate”.
In these difficult and turbulent times, every family should have recourse to sound legal advice. They should have the ability to punch above their weight to protect themselves, where necessary, in the complicated environment in which we all live. A comprehensive legal protection programme is both a huge benefit to members within a group and of great value to the group in the form of retained membership. To make it easy, a link is provided on the group’s website, whereby members can submit their legal problems, dilemmas and question on any matter. A considered, constructive response from a local solicitor will be forthcoming within three working days.
In addition, the cover can enhance a personal lines affinity scheme and can be offered as an employee or member benefit to the commercial scheme principle. This range includes motoring prosecutions, contractual and consumer disputes, pursuit of compensation for injury, neighbourhood disputes, uninsured motor losses, employment disputes and tax audits. Mr. Evans stressed that “Insurance brokers now appreciate that Legal Expenses Insurance can be marketed as a front line cover and the affinity group route is a good route to take as providers like Aurora will provide you with the marketing and skills support you may need. Mandatory and bulk-buy opportunities will further reduce the cost, but not impede the perceived value where there are affinity opportunities.”
Legal Expenses insurance is well placed to respond effectively to the ever changing demands of modern life. Unlike other insurance products, Legal Expenses insurance offers tangible services in addition to provision of risk transfer. By supplying knowledge, Aurora helps clients through the growing jungle of regulation and, as such, provides them with tangible benefits alleviating stress in an increasingly time constrained world.
Aurora also delivers an effective market solution, promoting access to justice whilst alleviating financial pressure on the public system. Philip Hawkes, Business Development Manager of Aurora, said “In order to capitalize on these emerging trends, Aurora needs to have an unwavering focus on the consumer. By fully understanding the demands of a changing society, Aurora’s products and services will become increasingly relevant and appreciated by consumers. A quality offering needs to be customer-centric, by, for example, making sure the policies are comprehensible to their target market by using plain and unambiguous language.”
This approach requires Aurora, and its supporting underwriters at Lloyd’s, to continuously review products and services based on consumer feedback. Customer relationship management is at the heart of this approach. All of these measures aim to enhance customer confidence which is particularly important for a complex product like Legal Expenses insurance. When gearing up for future challenges, “new communication technologies will be a key determinant of success”, said Mr. Hawkes. “Younger generations are used to an accelerated pace of life, are comfortable communicating digitally and have come to expect rapid responses, be it in their private or commercial life. Adapting to this reality creates an opportunity for Aurora to employ new technologies to enhance the services we provide, re-introducing a personal touch into the customer relationship and re-connecting with customers and brokers.”
