Financial & Legal Ltd, the specialist LEI insurer headed by MD Karen Beales, has launched a new excess protect product range distributed via brokers, covering excess losses on home, motor and bike as well as a combination product. Karen explained that brokers can sell excess cover either as a stand-alone add on to a primary home or motor policy, or it can be tailored to protect customers across a range of excesses, including travel, motor, bike and home.
She said: “The excess can differ by policy and insurer so we have developed our proposition to ensure brokers have greater flexibility to select a product to suit the customer needs.”
Karen, who joined FLI as MD in February 2020, said her team’s focus on creating a new excess proposition was a response to the lack of innovation in this sector of the ancillaries market. “The market is in stasis and struggling to attract new capacity, so we have a great opportunity, using our own capacity, to re-energise the sector with more innovation.”
She added: “We are also able to enable delegated authority for policy issue and claims, or we can handle claims ourselves, so our broking partners have a number of options to choose from.”
The new product has been tested with Commercial and General for the past few months and according to Charles Coburn, business development director at C&G, it has been a valuable addition to their overall customer proposition.
He said: “The market for excess protect and similar ancillary covers has been contracting, which is disappointing, because our customers tell us that excesses are a major source of concern, especially for our motor customers on finance packages, who don’t want to risk being left with a heavy bill should their vehicle be written off during the contract.”
He went on: “I’m pleased that quality products are coming back into this market, which will encourage more confidence among brokers to offer the products knowing that they are backed by solid and stable capacity.”
Karen said that the partnership with Commercial and General had been a valuable opportunity to test the products before reaching out to new and existing trading partners, and she looked forward to ancillaries becoming a significant new area of growth for FLI as it builds a diversification strategy out from the core LEI offer.