Hilltop Finance launches into Insurance with Cavere Intermediary

25th November:  Hilltop Finance, the Manchester based financial advice firm specialising in Pensions and Retirement Planning, has launched its first ever home insurance product in partnership with GI provider Cavere Intermediary.

Cavere Intermediary has designed, delivered, and will fully manage the bespoke white-labelled home insurance product, underwritten by RSA and 5 star rated, using its cutting-edge proprietary Magenta technology.  Cavere will also deliver face-to-face coaching to Hilltop’s advisors, and under the terms of the deal Hilltop will also have access to its bespoke product training system for online training. Training will ensure that Hilltop’s team of advisors sell with confidence and deliver sound accurate advice based on a deep understanding of the product.

Mark Hawkins, Director at Hilltop Finance, commented: We’re delighted to launch our first insurance offering with Cavere Intermediary.  It’s a fantastic complementary addition to our existing range of pension services, offering high quality cover, designed to meet the specific needs of our target market at a competitive price.  Treating customers fairly is central to our corporate culture, Cavere is a like-minded partner in this regard and our customers are safe in their hands.  Likewise by providing our advisors with product training they’re helping ensure that our customer are always provided with clear information and advice.

Paul Thompson, Managing Director at Cavere Intermediary, comments: “Hilltop are a fantastic example of a business that is diversifying to meet customer needs, and I couldn’t be more delighted that they chose Cavere as their partner.  Together not only are we providing Hilltop customers with access to a 5* home insurance product, as well as slick technology-driven administration, but most importantly a focus on service, quality and value that ensures they will always receive the best experience possible.”

 

 

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For further information please contact:

Kelly Prior at Spotlight Consulting:      kelly@spotlightconsulting.co.uk or 07730 572878

 

About Cavere Intermediary

Cavere Intermediary, part of the Cavere Group and trading style of Cavere Ltd, provides a range of wholesale General Insurance products for Brokers and Intermediaries.  All Cavere Intermediary policies are highly rated and backed by leading insurers.

Cavere Intermediary leads through technology innovation, and championing creative ideas and solutions that enable its partners to differentiate their proposition in the marketplace.

Based in York, Cavere Intermediary is authorised and regulated by the Financial Conduct Authority.

www.cavereintermediary.co.uk

 

Stealth fees are unnecessary and risk damaging customer relationships – Mortgage Solutions

In my last column I explored the issues surrounding a worrying rise in the practice of fees being added to general insurance (GI) sales by brokers. Keeping on the issue of treating customers fairly (TCF), this month I want to highlight the equally unfair practice of charging customers fees for cancelling or making changes to policies.

However, this is not intended as criticism.

With trail commission being slashed by some providers, and the Financial Conduct Authority (FCA) driving down commission, I appreciate that brokers are under pressure, and so I also hope to offer a solution.

So called “stealth fees” for the set up and cancellation of insurance policies have long been criticised. It seems common practice for fees not to be refunded to the customer if they cancel their policy, as well as loading additional charges if they wish to make material changes. A report in the summer by a leading price comparison site found a marked increase in stealth charges, such as adjustment fees, cancellation charges and other administrative fees, between 2012 and today. While this report points a finger at motor insurance, the issues raised apply equally to general insurance sales.

Unfair practice

Brokers must be upfront about such charges, and make them clear in their terms and conditions, however my big issue with this practice, aside from the obvious TCF issues, is that making such charges risks damaging the customer relationship. This is something brokers cannot afford to do in such a competitive and customer driven market.

At a time when consumer trust in the insurance industry is low, and when customers have more access to a wider range of products, from a wider range of providers than ever before, one of the biggest issues facing brokers and intermediaries is improving customer engagement and retention. Charging cancellation and adjustment fees is an unfair practice, but importantly it is unnecessary in an age where technology and specifically the harnessing of live customer data offers a solution.

Technology can offer brokers real time notifications of customer activity such as cancellations, failed direct debits, cancelled mandates, and so on. By facilitating real time customer management these live customer dynamics ensure brokers are never caught on the back foot – for example, only finding out a customer has cancelled a policy when their commission statement comes in. And it can foster proactive engagement, prompting brokers to pick up the phone, speak to the customer and address their concerns. In doing so, not only can a broker save the sale but they also have an opportunity to deepen the relationship, by gaining a clearer understanding of the customer, their lifestyle, concerns and needs.

Exceed expectations

Rather than simply allowing the customer to cancel for a quick buck, brokers should be striving to exceed expectations. Brokers must begin to realise that in the age of the customer the old ways of working will no longer bear fruit and evolve based on experience. They must embrace technology as an enabler and harness the solid reasons it delivers to have a conversation. In doing so, they’ll differentiate their proposition, build credibility and trust, build loyalty, and ultimately earn more than they ever could from small cancellation and adjustment fees.

Link to article here

Brokers should not be inflating prices just to increase remuneration – Mortgage Solutions

Two of the industry’s chief regulators appear to be working rather at odds.

HM Revenue and Customs (HMRC) is consulting on whether broker fees should come under the scope of Insurance Premium Tax (IPT) to prevent brokers moving away from a commission-based revenue model to a fee-based one that enables them to reduce the IPT liability.

Meanwhile the Financial Conduct Authority (FCA) would prefer to double down on unfair commission practices and encourage brokers to operate on a fee-from-clients basis.

We appear to have ourselves a bit of a conundrum.

From my own experience I’ve certainly noticed a rise in the practice of fees being added to general insurance (GI) sales by brokers.

The problem with adding fees to a policy is how do brokers collect their money if the customer wants to pay by direct debit?

An insurer won’t normally allow brokers to add a fee to the policy and then collect the direct debit from the customer inclusive of the fee.

Brokers therefore have two options – charge the customer an initial payment by credit or debit card and then let the customer make instalments by direct debit for the insurance policy, or wrap the entire premium and fees up in a premium finance agreement.

How can brokers justify this?
I am sure brokers adopting such practices would argue they are not doing anything wrong and that they make it all very clear in their terms of business.

But is this the best solution for the customer? Is it treating customers fairly and are brokers being remunerated in ways that conflict with the customer’s best interests?

The FCA has been taking a hard line on unfair practices so why is HMRC looking at this issue more closely than the regulator?

To give you a typical working example: If an insurance premium is quoted by the product provider at £300 inclusive of IPT and they offer the ability to pay the premium by instalments at no extra charge, the customer would pay £25 per month.

The broker would earn 25 percent commission making their earning from the sale £66.96.

But, if the broker wraps this policy into a premium finance contract the additional fees and commission could increase their earning to as much as £120.30 including the commission plus £35 arrangement fee and five percent commission from premium finance provider.

However, despite the customer paying more – £366.82, based on an average 9.5 percent premium finance interest – the IPT remains the same. No wonder HMRC is paying attention.

My point is that regardless of the loss of IPT revenue, I’m not sure how any broker can justify such an approach when they have the ability to provide instalments interest-free.

So what to do?
As a GI provider I believe that great service is not delivered for free.

Brokers should be paid a fair commission and trail and should not be forced to charge fees on top of the premium to cover their costs.

However, brokers should not be inflating the price the customer pays just to get their remuneration higher or upfront.

Furthermore, is it right that the customer does not get the fee refunded if they decide to cancel their premium inside the statutory cooling off period?

And do not get me started on the fees for cancelling or making changes to policies. That’s one for another day.

Link to article here

How one broker firm boosted its income by focusing on insurance – Mortgage Solutions

My last column explained that advisers do not need to compete on price when advising clients about their insurance options. Instead, the provision of quality service and support is more than enough to make it worth their time while also providing their client an important service.

This contribution is highlighting how one mortgage advice firm has benefitted from embracing this approach.

I have coined the term The Enlightened Broker and if we have ever met you’ll know it’s a concept I champion strongly.

To put it simply, the enlightened are those that look beyond the perceived burdens of price, regulation and competition, and believe that differentiation and customer experience offer the best route to sustainable growth.

I say concept, but in fact the enlightened broker is a proven strategy.

YMD’s review service

To give you an example, Your Mortgage Decisions (YMD) partnered with Cavere to trial the concept.

We trained up a specialist insurance adviser for them, who they then introduced to all of their clients by way of a free protection review service.

The specialist adviser conducts a full review of each client’s current cover to ensure it is appropriate for their needs.

This leads to three possible outcomes:

Either the adviser discovers that their current arrangements are inadequate and can save them money for the same cover, indeed our data shows money savings can be achieved on half of reviews;
They could achieve better quality cover for the same price;
Or alternatively they discover that the client already has the right cover in place.

Bottom line boost

The benefits of this approach prove itself very quickly.

In instances where better cover can be obtained, this provides YMD with a valuable income stream – an uplift in insurance sales which more than pays for the cost of providing the service, and trail commission for future years.

But more than boosting its bottom line, the service has delivered YMD with a differentiated service proposition.

They are engaging with their clients regularly and going above and beyond to deliver on service and value.

Providing the review service has boosted retention and built brand loyalty – a lasting legacy.

Now is not the time for mortgage brokers to shy away from insurance sales, now is the time to invest in doing it right.

Link to article here

Mortgage advisers do not need to compete on price to sell insurance – Mortgage Solutions

As a general insurance provider all too often I hear from mortgage brokers that insurance sales are just not worth the effort. I empathise, but I ask myself how then do some mortgage brokers sell insurance both easily and successfully?

The pressure to compete on price, to adhere to regulation and compliance, to put in place the correct sales procedures and communications strategies are all barriers to entry, costing valuable time and money.

However, I strongly believe that mortgage brokers not making the effort to sell insurance are missing a trick, or two.

Mortgage brokers are operating in a market in which their value proposition needs to be strong if they’re to survive.

With insurers already offering self-service online models, introductory offers falsely leading to a focus on price, I say falsely because it’s not true mortgage brokers cannot compete and I’ll explain why, and the looming prospect of big businesses such as Amazon taking a cut of the market, mortgage brokers need to find a way to differentiate their service proposition.

This really is not as difficult as it sounds, the point of differentiation already exists – trusted council, quality advice and personal service have always been the cornerstone of mortgage broker advantage.

Insurance sales feed perfectly into this process of differentiation, giving mortgage brokers an opportunity to keep in contact with their customers in between the standard mortgage touch points.

Don’t need to compete on price

When I speak to mortgage brokers price is always the biggest reason quoted for not selling insurance. There still persists a common misbelief that you cannot compete on price.

My answer is simply don’t sell on price, you don’t need to.

The relentless drive for new customers driven by price has been the driving force behind the high level of churn the industry now experiences.

Churn to the extent we have now, where a customer can get a price that is below the true cost of the risk in the hope that the customer will simply stay with that insurer through inertia when the price doubles at renewal is bad for everyone – and your customers are very much coming to realise this.

What is more at any one time less than a third of the market is on an introductory offer, meaning there are still two thirds of the market open to mortgage brokers – customers that could be overpaying, or not receiving the right level of cover, and would appreciate trusted advice.

My answer to every mortgage broker still holding onto the misbelief is this, not only can you compete on price but you can achieve differentiation in terms of quality, service and value.

Customers are happy to pay a little more for peace of mind.

Staying nimble

When you look at the data what you see is that they don’t enjoy shopping around and switching every year for introductory deals.

What they actually want is to feel valued and confident that they have the right cover first time.

In my experience customers value the knowledge a mortgage broker imparts, as well as the time taken to get the right cover for their needs, meaning that they don’t need to shop around themselves.

Differentiation also means staying nimble to needs and connecting with clients via proactive, timely and relevant engagement.

Link to article here

Cavere Intermediary refreshes home insurance product – Insurance Age

Policy is underwritten by Ageas and has been made available to the broker market.

Cavere Intermediary is set to launch an upgraded home insurance policy, underwritten by Ageas Insurance.

The provider stated that the product will be available to brokers from June this year, adding that the policy had been designed to provide comprehensive insurance with higher cover levels and claim limits.

It detailed that the new offering had been redefined to be simple to read and understand.

Cover
According to Cavere, the key features of the refreshed policy include:

  • Maximum claim limit for contents of £100,000
  • 60 days un-occupancy cover as opposed to the standard of 30
  • Cover for valuables within the home increased to 30%
  • Maximum item limit for amount for contents in the open of £500
  • The maximum claim amount for garden cover has increased to £1,500
  • Bicycle cover up to £1,000 or if specified up to £2,500 per bike to a max of £20,000

Paul Thompson, managing director at Cavere, commented: “We believe that getting right first time solutions for each customer and their individual needs and risks requires an innovative approach – this product ensures the best possible value for money when compared with standard offerings offered by GI panels.”

Chris Dobson, distribution and development director at Ageas, added: “Ageas have been extremely impressed with the speed, agility and expertise that Cavere have demonstrated when developing this upgraded Household product.”

Cavere Intermediary launched in January 2019 and its product range currently includes home insurance, landlords’ and tenants’ insurance, personal accident, travel and non-standard insurance cover.

Ida Axling – News Editor, Insurance Age

Link to article here

Cavere Intermediary and Ageas Collaborate to Launch New Home Insurance Policy

Cavere Intermediary, the technology driven GI Provider backed by some of the UK’s leading A-rated insurance brands, is delighted to announce that from June 2019 intermediaries will be able to access its upgraded Home Insurance Policy underwritten by Ageas Insurance Ltd.   Unlike standard policies, with common wordings, typically offered by GI provider panels, this policy has been designed to provide the very best and most comprehensive insurance, with higher cover levels and claim limits, at a competitive premium.

As part of Cavere Intermediary’s ongoing commitment to improve its products and services, this new home insurance policy delivers some major changes to its current Ageas product.  Already a 5 star rated product, the upgrade reflects both Cavere and Ageas’s desire to go above and beyond to deliver the very best in terms of service, quality and value.  Likewise, in an effort to set the benchmark for policy wording standards, it’s been redefined using market leading research techniques making it simple to read and understand – setting a new standard in clarity and quality.

Unlike some home insurance policies currently available in the market, Cavere Intermediary offers:

  • Maximum claim limit for contents of £100,000
  • 60 days un-occupancy cover as opposed to the standard of 30
  • Cover for valuables within the home increased to 30%
  • Maximum item limit for amount for contents in the open of £500
  • The maximum claim amount for garden cover has increased to £1,500
  • Bicycle cover up to £1,000 or if specified up to £2,500 per bike to a max of £20,000

Speaking about the launch Paul Thompson, Managing Director at Cavere Intermediary, commented: “We are delighted to bring this product to market in partnership with Ageas.  Like us, Ageas have always taken a strong leading position when it comes to delivering the highest possible levels of comprehensive home insurance cover, at a competitive price and in a way that sets the bar for policy treating customers fairly.  We believe that getting right first time solutions for each customer and their individual needs and risks requires an innovative approach – this product ensures the best possible value for money when compared with standard offerings offered by GI panels.”

He continues: “This is an example of what can be achieved by having a truly Insurtech approach.  Using our proprietary Magenta technology we have a deeper understanding of customer needs, and can deliver significant money saving efficiencies which help to ensure quality cover at a price point that makes sense – as it stands today most of our competitors fall short on offering the levels of cover we are now delivering.”

Chris Dobson, Distribution and Development Director likewise commented: “Ageas have been extremely impressed with the speed, agility and expertise that Cavere have demonstrated when developing this upgraded Household product. Cavere’s attention to detail and long-term focus will be reassuring for any of its broad range of customers.”

Launched in January 2019, Cavere Intermediary provides brokers and intermediaries with premium General Insurance (GI) products.  Its product range currently includes home insurance, landlords’ and tenants’ insurance, personal accident, travel and non-standard insurance cover.

 

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For further information please contact:

Kelly Prior at Spotlight Consulting:      kelly@spotlightconsulting.co.uk or 07730 572878

 

 About Cavere Intermediary

Cavere Intermediary, part of the Cavere Group and trading style of Cavere Ltd, provides a range of wholesale General Insurance products for Brokers and Intermediaries.  All Cavere Intermediary policies are highly rated and backed by leading insurers.

Cavere Intermediary leads through technology innovation, and championing creative ideas and solutions that enable its partners to differentiate their proposition in the marketplace.

Based in York, Cavere Intermediary is authorised and regulated by the Financial Conduct Authority.

www.cavereintermediary.co.uk

 

Building Relationships Drives Cavere Group Expansion – Insurance Edge

Posted on 16 April 2019 by Insurance Edge Editor in Opinion

Cavere Intermediary, officially launched in January. Part of the Cavere Group, it’s growing rapidly, with a raft of new and innovative products and services, most recently a bespoke scheme with Age Partnership. Insurance Edge caught up Paul Thompson, Cavere’s Founder, to find out more.

IE: Tell us a bit more about the Age Partnership deal, do you think as we live longer the industry needs to make travel cover affordable for older people?

PT: The Age Partnership deal is quite an interesting fit. They specialise in equity release, so that in turn means that many older people suddenly have money to fund more holidays. The Cavere scheme came about as a result of direct feedback from Age Partnership; their customers wanted more choice beyond the industry standard cut-off at age 65 for travel insurance, plus cover for longer stays outside the UK. Lots of people want to spend winter away from the UK, so that means they require cover of say 90 days, rather than the usual 30 days. This is what we specialise in, thanks to strong relationships with insurers and a technology driven model we can be creative and deliver solutions that are new and responsive to the changing needs of customers.

IE: So can data analytics software really fine tune the general insurance market, or is it more a case of simply responding rapidly to changes in the market?

PT: Speed matters, but so too does deeper understanding and a responsive approach to meeting customer needs. We can build our products from the basic idea stage to launch in a matter of days, using our own software. We don’t use software houses because it can sometimes mean that agility is lost and you might wait a few weeks for changes to policy wording etc. I think what Cavere strive for is full integration of client feedback and fine-tuning our products by using our own technology to offer total control to the customer.

IE: The home contents insurance market is ready for a major change as fewer people buy houses and rent for most of their lives, how can insurtech help us offer a more diverse set of contents policies?

PT: There’s an inevitable shift in the contents market, and as the UK rental sector is generally under-insured I’d say there’s a big opportunity out there. Renters don’t necessarily see home ownership as the best way to protect their assets, and letting agents aren’t authorised to sell insurance, so there are some challenges ahead. Perhaps the best approach is through online marketing; especially to older renters who may be renting larger homes, and therefore have more contents to insure.

IE: Is there anything you can tell us about Cavere’s expansion plans for 2019?

PT: Since we’ve launched it’s been about building relationships, word of mouth marketing and initiatives like the Age Partnership deal. This year we have just recruited our first Business Development Manager to help us build stronger relationships with brokers and intermediaries. But the real key to our growth will be clarity of vision, a nimble and responsive environment, and a focus on continuous innovation. Technology innovation is as much a core of the business as insurance provision. Cavere is a disruptor, embracing the latest advances in technology to assist brokers and intermediaries to realise the vast potential offered by GI. The strength of our differentiated proposition will be what defines our growth over the coming year and beyond.

IE: Winter 2018/19 was fairly quiet in terms of flooding in the UK, but looking ahead how do you see the residential flood insurance market changing?

PT: The interesting thing about residential flood insurance is that cover is getting cheaper after Flood Re. But this fact of life doesn’t seem to be widely known and perhaps a benign winter has put flooding out of mind for many home owners. We were the second company to launch a Flood Re scheme, and it could be that many people still think this insurance is too good to be true?

In the long run the market will probably become less fragmented, more standardised, because in reality flood insurance is no longer a non-standard risk, it can and should be written as standard with Flood Re in the background. Hopefully in time there will be a consensus amongst insurers or perhaps even a standard flood risk database, but until then brokers and intermediaries must work with a GI provider with the experience and insurer relationships to respond to the needs of customers in flood risk areas.

IE: Regardless of whether the UK actually leaves the EU, do you think insurance is bound to become a more global industry in terms of blockchain backed capital and underwriting, tech-driven marketing and automated claims servicing?

PT: Brexit is interesting as it throws up some short term challenges and possible disruption. But insurance is already a virtual, global product. Most insurers can write the paper in whatever market they like, so whether it’s the EU zone or the UK with slightly different rules, it really makes little difference. The only thing I’d say is that the industry needs to be quick to adapt to any changes, whatever the politicians decide.

IE: Some motor insurers have attracted criticism in the media for not rewarding loyalty, how can the industry utilise the ever increasing stream of data from our personal lives to customise cover, so that people feel their true circumstances are being taken into account?

PT: Is the loyalty penalty being driven by a lack of data? Probably not, it’s more about offering cheaper, subsidised deals to attract new customers. So it’s that business model which needs to change. If the regulator takes action then many insurers will possibly be secretly glad that the market is less about the initial offer, and more about flexible pricing and long term relationships between customers and insurers or brokers.

When you look at the data what you see is that customers don’t always enjoy shopping around and switching every year for the best deal on motor or home insurance. At Cavere we really work hard to make customers feel valued, and that they have the right product first time, and so we’re pleased that we have a 92% renewal rate. Much of this is down to giving brokers and customers plenty of information via regular updates, and engaging brokers throughout the year. In the end insurance is a journey for many consumers and the way you respond to changes in their lives often really helps renewals and builds brand loyalty.

IE: A 92% customer retention ratio is a stat that’s worth repeating, especially in an increasingly online insurance market. Paul, thank you for your time.

 

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Age Partnership partners with Cavere Intermediary to offer home and travel insurance – Mortgage Finance Gazette

Equity release specialist, Age Partnership, has signed a deal with the new general insurance provider, Cavere Intermediary, following its official launch last month.

In partnership with Cavere Intermediary, Age Partnership has launched its own branded Home and Multi-Trip Travel Insurance policies for the under 75s, direct to consumers.

Cavere Intermediary has designed and will fully manage the bespoke white-labelled insurance portal hosted on the Age Partnership website. Cavere Intermediary will administer the policies from end-to-end and manage the claims and back office requirements, using its cutting-edge proprietary Magenta technology.

Steve Dicks, head of insurance at Age Partnership, commented: “Cavere Intermediary is positively disrupting the GI market – their insurtech approach injects much needed innovation and efficiency into the process and we’re delighted to be launching our direct to consumer offering with them.

“Being able to offer home and multi-trip travel insurance for up to 75 year olds is unusual and important for our customers, when the industry standard is just 65. We’re really excited by the potential to deliver a better customer experience for improved brand loyalty and customer retention.”

Launched in January, Cavere Intermediary provides brokers and intermediaries with premium general insurance products. Its product range currently includes home insurance, landlords’ and tenants’ insurance, personal accident, travel and non-standard insurance cover.

Paul Thompson, managing director at Cavere Intermediary, said: “At a time when customer loyalty is vital, the focus of Cavere is to work in partnership with intermediaries to ensure they drive loyalty by getting right first time solutions for each customer and their individual needs and risks.

“It combines best in class insurance products and underwriting with advanced technology to deliver consumers, and intermediaries placing insurance for their clients, with smooth transactions, streamlined quotations, slick policy administration, and ultimately better experiences and outcomes.”

By Joanne Atkin, 5th March 2019

Link to article here

Age Partnership launches home insurance offering with Cavere Intermediary – Mortgage Introducer

Age Partnership has signed a deal with general insurance provider Cavere Intermediary to supply home and multi-trip travel insurance policies for under-75s.

Cavere Intermediary has designed, delivered, and will fully manage white label direct to consumer insurance portal hosted on the Age Partnership website.

Steve Dicks, head of insurance at Age Partnership, said: “Cavere Intermediary is positively disrupting the GI market – their insurtech approach injects much needed innovation and efficiency into the process and we’re delighted to be launching our direct to consumer offering with them.

“Being able to offer home and multi-trip travel insurance for up to 75 year olds is unusual and important for our customers, when the industry standard is just 65.

“We’re really excited by the potential to deliver a better customer experience for improved brand loyalty and customer retention.”

Cavere Intermediary provides brokers and intermediaries with premium general insurance products.

Its product range currently includes home insurance, landlords’ and tenants’ insurance, personal accident, travel and non-standard insurance cover.

Paul Thompson, managing director at Cavere Intermediary, said: “Cavere has a strong track record of building bespoke, white-labelled solutions, and we are delighted to help Age Partnership bring to market their unique offering.

“At a time when customer loyalty is vital, the focus of Cavere is to work in partnership with intermediaries to ensure they drive loyalty by getting right first time solutions for each customer and their individual needs and risks.

“It combines best in class insurance products and underwriting with advanced technology to deliver consumers, and intermediaries placing insurance for their clients, with smooth transactions, streamlined quotations, slick policy administration, and ultimately better experiences and outcomes.

“Our work with Age Partnership is living proof of our ability to deliver a truly different and better GI experience for everyone.”

Ryan Bembridge March 5th, 2019 – News Editor, Mortgage Introducer

Link to article here