NIG Motor Trade Proposition Overview
Despite the challenges of the dynamic UK business and insurance market, NIG offers a strong Motor Trade proposition through differentiated product offerings and potential online trading capabilities. With a focus on eTrade platforms, NIG aims to maximize business transacted in partnership with brokers like Marsh. The proposition includes added value elements such as risk management support and claims preparation fees.
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Contents A strong partner NIG Leadership Team Introduction Proposition added value elements Underwriting appetite Minimum and maximum primary limits of indemnity Minimum premiums applicable 3 4 5 6 Service model: Sales & Underwriting Service model: Claims Training support New business support Risk Assist Schemes and affinities Appendices 21 23 25 28 30 32 33 17 19 20
A strong partner NIG is a broker-only insurer. We believe in getting to know both the brokers we work with and their clients businesses, building trusted partnerships that last for the long-term. UK commercial broker-only insurer We are part of Direct Line Group plc, providing stability and financial strength. 3
NIG Leadership Team Sonya Bryson Managing Director Steve Scott Director of Broker Markets Paul Hanwell Head of Complex Underwriting David Enoch Head of Strategic Broker Relationships, Marketing & Propositions Kelly Kay Marsh Commercial Partnership Manager Head of Centralised Trading Neil Fitton Head of Commercial Insight & Improvement Mervyn Harris Strategic Partner Manager Rob Smart Head of Claims Main contact point for NIG Strategic Trading & Activity including Motor Trade Development 4
Introduction Despite the challenges of the dynamic nature of the UK business and insurance market environment, NIG remains open for business. Motor Trade has always been a strong product offer within the NIG portfolio of products. We want to provide Marsh with a differentiated proposition that is transacted regionally via a product offering but also in future a potential online trading capability. This fits with both NIG and Marsh s strategic aims of looking to transact as much business as possible via eTrade platforms. We think this is an area where we can work together on a long-term basis to maximise business transacted in this way. 5
Proposition added value elements Please read in conjunction with the Motor Trade One policy which forms the basis of the NIG Marsh Motor Trade policy wording. Policy Features Can you support? (Y/N) Your solution including information around uplifts? Policy Features Can you support? (Y/N) Your solution including information around uplifts? Risk Management Bursary Yes We are able to provide risk management support on cases upon request. Claims Preparation Fees Yes We confirm we are able to include a claims preparation Fee Clause in the wording extending to include the reasonable and supportable costs in preparation, certification and /or verification of a claims resulting from Damage as insured by Material Damage, Business Interruption, Damage to Machinery and Plant, Engineering Inspection and Computer Insurance, Engineering Business Interruption and Terrorism. Low claims Rebates Yes We confirm that we are able to offer Low Claims Rebate facilities. We can provide/ agree a sliding scale of discounts versus Loss Ratio bandings to deliver this as part of the proposition. MC Exclusivity Yes NIG Operate a One Quote to Market Policy across our Complex product range. This would also be applicable to Marsh Motor Trade Facility business. H&S Audit Yes We are able to provide. (See Risk Assist and Risk Management content within this document). In terms of the unique combination of coverages under this proposition we would set up the wording so that it was only produced by our e-documents system to out put for participating Marsh Commercial Agencies. 6
Proposition added value elements Please read in conjunction with the Motor Trade One policy which forms the basis of the NIG Marsh Motor Trade policy wording. Can you support? (Y/N) Policy Features Your solution including information around uplifts? Material Damage Section Replacement of lock following theft of keys - 10,000 Limit Yes Included as Standard Limit 10,000 Discount to effect sale - 5,000 Limit Yes Included as Standard - Limit 10,000 Trace and Access - 10,000 limit Yes Included as Standard Limit 25,000 NIG standard limit is 2,500 for any one tool and 10,000 for any one Employee any one claim. Employees tools - 5,000 limit per person Yes We can increase the limits for both Employees and Insured s PHT via endorsement. NIG don t have an inner limit for this item. The sum insured is as per the schedule Contents of customers vehicles - 5,000 limit Yes 7
Proposition added value elements Can you support? (Y/N) Policy Features Your solution including information around uplifts? Material Damage Section Loss of metered utilities - 25,000 limit Yes - See Comments re coverage Loss of Metered water limit currently 25,000. Wording can be extended to cover oil from any oil-fired heating installation . We could include this via endorsement New replacements vehicle 50% of NRV (cars & CV s up to 7.5t) Set limit is 50% of RRP subject to the claim being no more than 50,000 above the amount otherwise payable Yes Yes See comments re coverage. We provide theft cover of Motor Vehicles from Fraud/Trick/False Pretence up to 25,000. Non forcible theft Seasonal increase 30% SI uplift Yes This is NIG current standard Temporary removal cover up to 100,000 for P&M. Stock would be covered under the GIT section. Stock/Machinery in transit Yes Stock/Machinery/Vehicles at any exhibition - 25,000 limit NIG wording is restricted to indoor exhibitions only however we can extend via endorsement to any exhibition subject to a 50,000 limit per exhibition. Yes 8
Proposition added value elements Can you support? (Y/N) Your solution including information around uplifts? Policy Features Material Damage Section Commercial loads of customers vehicles - 50,000 limit See This is a cover that we would expect to see in relation to HGV vehicle type Motor Traders. We can consider if this is the case but would want to ensure that we would be able to construct suitable cover parameters in addition to the Sum Insured limit within an endorsement. Comments Contract sale price extension Yes Contract Price is extension U in our wording 9
Proposition added value elements Can you support? (Y/N) Your solution including information around uplifts? Policy Features Business Interruption Section Declaration Linked Basis of Cover 33% uplift Yes 33% is NIG current standard NIG current wording provides 15% with no upper limit. Changing it to 20% with a 1m upper limit would be acceptable. We can amend the current extension to match this requirement. Vehicle storage site extension 20% limit up to max 1m Yes Public utilities extension No inner limit up to max 1m Yes NIG wording has no inner limit or maximum value. Denial of access extension 1 mile radius and no inner limit NIG wording says in the vicinity without providing a distance limit to the premises Yes 10
Proposition added value elements Can you support? (Y/N) Your solution including information around uplifts? Policy Features Business Interruption Section Unspecified Suppliers extension 33.33% limit up to max 2.5m Yes NIG Current NIG Motor Trade policy limit is 25%. We can amend the current extension to match this requirement. Unspecified Customers extension 5% limit Yes Current wording provides a 15% limit NIG do not have a limit in our wording. Can restrict if required. Book Debts - 500,000 limit Yes NIG Motor Trade wording has a 5% limit. We can amend to the level required wording via an enhancement endorsement Transit no inner limit Exhibition sites - 25,000 limit Yes 25K is NIG current standard 11
Proposition added value elements Can you support? (Y/N) Policy Features Your solution including information around uplifts? Road Risks Section Third Party Property Damage - 10m limit Yes Set at 5m but can increase to 10m as and when required. New replacements vehicle 50% of NRV (cars & GV s up to 7.5t) NIG limit is 50% of RRP subject to the claim being no more than 50,000 above the amount otherwise payable Yes Replacement of locks following theft of keys - 10,000 Limit Yes Standard wording provides 50,000 limit Contract sale price extension Yes Extension F of Indemnity 1 in the wording We can include and would mirror the cover we provide under our Fleet policy. i.e. costs of draining, cleansing & rectifying damage caused. Incorrect fuelling cover Yes We currently have an inner limit of 50,000 for this. Would be hesitant to strip that out entirely especially given we have this limit for own vehicles. Loss of use of customers vehicles following damage no inner limit See Comments Contingency cover for cars owned by or loaned to an employee Yes Current Extension F of Indemnity 2 in the wording 12
Proposition added value elements Can you support? (Y/N) Policy Features Your solution including information around uplifts? Road Risks Section Unauthorised movement extension Yes Extension D of Indemnity 2 in the wording. Any friend/relatives of named directors/partners Yes We can include this cover upon request on cases Foreign Use Yes Included as Standard Unaccompanied demonstration Yes We can include this cover upon request on cases. Financial Loss extension/ Discount to effect sale Yes Included with 10K Limit Uninsured loss recovery facility Yes Included as standard This is a cover we would not be looking to provide. Consideration would could only be made upon agreement of clearly defined cover application parameters Reduction in value of customers vehicles No Courtesy Cars Yes We can include this cover upon request in most cases Protected NCD No The NIG Motor Trade product is not set up to operate on an NCD basis. 13
Proposition added value elements Can you support? (Y/N) Policy Features Your solution including information around uplifts? Legal Liabilities Employers Liability standard limit Yes 10m Public/Products Liability standard limit Yes 5m can be increased Cost and expenses for defending H&S prosecution Yes Included in the Motor Trade wording Compensation for court attendance Yes Included in the Motor Trade wording Legal expenses in connection with Corporate Manslaughter Act Yes Included in the Motor Trade wording Liability for damage to hired/rented premises Yes Included in the Motor Trade wording Defective workmanship Yes 5m standard limit Merchantable Quality/Financial Loss no inner limit Yes Included in the Motor Trade wording Environmental statutory clean up costs from sudden & unexpected cause Yes Included in the Motor Trade wording 14
Proposition added value elements Can you support? (Y/N) Your solution including information around uplifts? Policy Features Loss of Money Section Employee Dishonesty discovered within 30 days Yes Fidelity Guarantee section provides cover discovery up to 12 months. Wrongful conversion Yes Assault on Insured/ Employee Yes Included in the Money Section 15
Proposition added value elements Can you support? (Y/N) Policy Features Your solution including information around uplifts? Optional Additional Sections Cover Group Personal Accident Yes See Motor Trade One policy wording Appendix Directors & Officers Liability No We do not currently write this cover MOT Loss of Licence Yes See Motor Trade One policy wording Appendix Included in NIG Motor Trade One policy wording (Section 8) Commercial Legal Expenses Yes Computers Yes Offered as standard with the NIG Motor Trade Product Cyber Cover Yes Would have to be a separate Cyber policy Engineering/ Inspection Yes See Motor Trade One policy wording Appendix 16
Underwriting appetite Trade Action Notes Trade Action Notes Accident Management Company Decline Fitters (excluding tyres & exhausts) Standard Watch tyre fitting and loan of equipment to local farmers Agricultural Dealers Refer Fleet Management Decline Haulage Contractor Decline Auctioneers Decline Importer/Exporter Refer Auto Electricians Standard Kit Cars Decline Breakdown/Recovery Operators Decline Leasing & Hire Refer Breakers/Salvage Yard Decline Light CV's (up to 7.5t) - Body Shops Standard Car Park Operators Decline Light CV's (up to 7.5t) - Sales Standard Caravan Sales, Service & Repair Standard Light CV's (up to 7.5t) - Service & Repair Standard Car sales from a portacabin type premises operating from a yard or waste ground should be avoided. Cars - Sales Standard LPG Vehicle Conversions Standard Manufacturer Decline Electric Vehicles are separately classified. Mechanical Plant Refer Electric Vehicles are separately classified. Cars - Service & Repair Standard Motor Factors Standard Electric Vehicles are separately classified. Cars - Body Shops Standard Motorcycles - Body Shops Standard In relation to Classis/ Prestige cars we can provide a response subject to limits required. Classic Cars Refer Motorcycles - Sales Standard Motorcycles - Service & Repair Standard Coach/PSV Operators Refer Others - Body Shops Refer Coachbuilders/Bodybuilders Refer Others - Sales Refer Collection & Delivery Refer Others - Service & Repair Refer Conversions & Modifications Refer Ensure that spray booth is to LPC Requirements, that employees are wearing suitable protective equipment and are having regular health checks. Paint Spraying Standard Cosmetic Repairs Standard CV's over 7.5 t - Body Shops Refer CV's over 7.5 t - Sales Refer Petrol Filling Stations (without attaching Motor Trade) Decline CV's over 7.5 t - Service & Repair Refer Must have Motor Trade element to the risk compromising >14.99% of turnover. Petrol Filling Stations (with attaching Motor Trade) Refer Electric Vehicles - Sales Refer Electric Vehicles Body Shop Refer Electric Vehicles Service & Repair Refer 17
Underwriting appetite Trade Action Notes Racing/Rallying Risks Decline Self-Drive Hire Operators Decline Usually on the sides of vans but could include larger vehicles. Any Employers Liability risk working to height. Cross check the business involvement in any non-Motor Trade activity. Signwriting Refer Trailers Refer Check whether any second hand tyres/remoulds. If Yes = decline. Check that old tyres are properly stored and removed from premises on a regular basis by qualified contractors. (No storage in open unless in lockable metal containers.) Note: fitting of tyres to agricultural vehicles poses a higher-than-normal Employers Liability risk. Tyre & Exhaust Fitting Standard Valeters / Car Wash Operators Refer Vehicle Brokers Decline Windscreen Fitters & Repairers Standard 18
Minimum and maximum primary limits of indemnity Within the Motor Trade proposition we apply certain Limits of indemnity as standard or provide the option to choose. In terms of the principal ones applying these are as listed below: Employers Liability Standard - 10,000,000 Maximum - 25,000,000 Wrongful Conversion 25,000 / 50,000 / 100,000 Fidelity Guarantee 10,000 / 25,000 / 50,000 Public Liability / Defective Workmanship Standard - 5,000,000 Minimum - 1,000,000 Maximum - 25,000,000 Personal Accident Minimum - 10,000 / 100 Maximum - 50,000 / 500 19
Minimum premiums applicable We will maintain a competitive level of minimum premium for Marsh Commercial Motor Trade Customers: MD/ Public Liability/ Road Risks Minimum Premium = 750 + IPT Including B.I. /Money/GIT/ EL/ Defective Workmanship Minimum Premium = 1000 +IPT 20
Service model: Sales & Underwriting All our regions have the capability to write Motor Trade business for Marsh Commercial across the UK. E-Trading Centre Regional Trading Branches We have full branch sales and underwriting branches across the UK, based in: London (City) Bristol Maidstone Watford Glasgow National Trading Centre Birmingham Manchester Leeds Schemes Centre Gloucester FarmWeb Claims Each branch has dedicated teams of underwriters and trading staff who trade with the Marsh Commercial office in their geographic region so that we have full UK coverage. This also means that our teams have good local knowledge as well as strong Motor Trade technical skills. Our wide experience in underwriting Motor Trade risks means we can provide a flexible response to the Marsh offices who are already trading via a full agency network in place with NIG. 21
Service model: Sales & Underwriting Regional business New business As indicated, regional (Manual) Motor Trade business will be supported Initial contact for appetite call from underwriter (unless requested by our Regional offices based around the UK. earlier) is within 48 hrs. Please note: NIG underwriters will ascertain the optimum response date from your broker if not These NIG branches are the same teams that Marsh Commercial requested in the presentation. branches currently deal with and, therefore, already have recognised contacts in place terms of underwriters and support staff. MID: MT road risk policies have their MID updated by the client/broker. At inception they ll need to call our MID Helpdesk We look to respond to quotes & MTAs in line with broker requested with the policy number to be provided with log-in details. timescales, but also have standard service levels that are a minimum standard for operations. Regarding cover notes, updates are quickly revised, should there ever be a circumstance where there is a delay, Marsh personnel Existing business can use the online cover note facility to produce evidence of cover. Renewal provision: minimum of 21 days of renewal date/ Mid Term Adjustments: maximum of 7 days (actual service timings regularly better than this in real operational terms). 22
Service model: Claims Our digital platform allows online claim notifications and evidence submissions across all claims Flexible approach to reporting new claims with 24/7 support from adjusters Flexible approach to payment options and methods Knowledge supported by access to a network of specialist teams and suppliers Dedicated claims handling teams deliver proactive claims handling to the customer Experienced Large and Complex Loss Team have developed good relationship with Hamilton Bond on large losses over the years National Claims Relationship team to support servicing, account development and provide a link to all internal stakeholders Claims Relationship team will attend regular claims review meetings and provide supporting Management Information Clear lines of escalation into team leaders and operational managers 23
Service model: Claims Personnel Proposition development NIG will provide details of our dedicated claims handling As a Strategic Partner to Marsh, NIG already have a great teams, team leaders and operational managers. All of whom deal of insight into Marsh service requirements and will build will have a great level of understanding of the product, on these to align to the specifics of the Claims proposition. proposition and development relationships with the Marsh We will also continue to engage throughout the lifetime of the claims staff. Similarly, the Large & Complex Loss team will proposition to consider any specific requirements that also provide dedicated handlers on cases over 100k. emerge. Management information Additionally, you will be supported by our Claims Relationship We are able to agree on a suite of claims management information Team, who provides nationwide coverage supporting all Marsh that can be used to help monitor and manage proposition from a offices. Where complaints arise, we have dedicated Formal claims perspective. Please see next page for details. Complaint and FOS Liaison handlers in place. NIG & Marsh Central Claims management teams have a good This enables us to support and develop the claims proposition working relationship and are well versed at designing and agreeing at local and national level to fit the Motor Trade proposition on specific Clams M.I. requirements. best. 24
Training support NIG can provide product training input to Marsh Commercial We can provide training across many disciplines in connection with broking and Claims staff. We have many subject matter experts our Motor Trade proposition, including: in the sales, underwriting eTrade and claims disciplines who we Technical underwriting will made available to provide input and question response Coverage training. Sales features We can deliver training via face-to-face/webinars to staff as Claims process and management required. We see electronic meeting spaces as an efficient way Any other areas required by Marsh of providing input to staff from across the Marsh locations in good time. Overall we would look to design a programme that best supports We can also provide regional face to-face training via our the needs of the Marsh Staff to ensure that they have the requisite branches who are always happy to input where required. level of product knowledge. 25
Training support: online portal Marsh Motor Trade documents are on nig.com. NIG & Marsh Commercial staff can access via a secure gateway as follows: Login via your browser using the URL: www.nig.com/marsh-commercial Then input the following where prompted: Username: MarshUser Password: c15nj20 26
Training support: online toolkit A new tile containing relevant documentation and support material will be added to the existing Marsh Commercial content. Motor Trade One Available documents Motor Trade Motor Trade Motor Trade 27
New business support We recognise the need to grow the Marsh Motor Trade book We will contribute to the development of the account by: and service the existing cohort of business. Providing research and development support to identify target Motor Trade business. Undertake joint marketing campaigns targeted at agreed customer groups or trade bodies and associations. Assist with lead generation programs this may also involve other companies in DLG. Undertake cross selling initiatives Look to deploy scheme/affinity capability across the account. Ability to develop wider quote capability to align with targeted business campaigns. Write business over 50K GWP as required we are keen to write to this business for Marsh Commercial. NIG will support joint working to target business sectors/sub- sectors and different customer groups to help maintain a flow of new business into the account. We will look at potential rollover opportunities where there is a tranche of business that March Commercial need to place. 28
New business risk management support There are a host of other areas that are covered by this service with feedback from our surveyors that there is interest from clients in understanding the key risk areas to their business including: NIG has an in-house Risk Management and in the field Survey team. We can help provide the most competitive terms across risks in the Motor Trade sector. Portable Heating Key Conditions of cover In addition to existing clients, we are able to deploy our highly Compliance with Health & Safety regulation experienced Risk Survey force on prospective and newly Pollution Risk control secured clients. Examples where value can be added by Machinery operation safety involvement include: Ventilation/exhaust for paint spraying areas Survey reports enhance underwriters ability to provide Management of welding gases optimised discounting for clients. Storage of waste and old tyres Identify & remedy common Motor Trader issues such as High value tools & equipment underinsurance, awareness of minimum security Proof of ownership in the event of a claim standards, lack of required H&S documentation and outstanding electrical wiring checking regimes. 29
Risk Assist NIG offers Risk Assist, our online risk management platform. It s free to Marsh Motor Trade policyholders giving access to our very latest online risk management proposition suite. Risk Assist covers the spectrum of business risk issues and provides useful tools and information to help businesses manage risk. Risk Assist will be accessible to both Marsh Commercial Staff as well as customers online at www.nigriskassist.com Business Continuity a client can be prepared to manage threats that impact their business and can build their own plan with the actions they need to take to recover efficiently from disruption or disaster. Benchmark building E-valuation A valuable tool pinpoint the right buildings sums insured given the rebuilding cost price surges. Driving Risk Effective management of occupational Road Risk (ORR) E-Learning Training Sector Specific and keeping the Motor Trade workplace safe with accredited eLearning courses for employees. It helps make clients aware of their responsibilities and common hazards in their workplace. Ask the Expert a direct channel to answer your questions about HR matters and Health & Safety regulations. Unlimited access to experts with a guaranteed response time within 24 hours. A-Z guidance on Health and Safety documents, templates audits to help clients keep up with your legal responsibilities for workplace safety. Includes a Covid19 Hub which is kept up to date with the latest guidance. A Tailored Customer Experience in addition to all the great content contained on the site NIG are able to offer a Marsh Commercial specific configuration that enables MC personnel to link into their policyholders who are signed up on Risk Assist. Human Resources round the clock access to information concerning employment matters. 30
Risk Assist Risk Assist: Motor Trade Landing Page 31
Schemes and affinities We understand that there are opportunities and rewards to be gained where a specific scheme or affinity solution can be created for distinct Motor Trade customer segments. Undertake regular development workshops to analyse and identify opportunities, e.g. in the sub or above 50K business space. We recommend that we take this approach with Marsh Commercial with respect to the development of the Marsh Motor Trade if this was an area of interest for a specific Motor Trade sub-segment should we move forward. Our schemes and affinities continues to develop to meet the market s needs, and it is an area where NIG are seeing strong growth. We will consider affinities from across the spectrum of Motor Trade businesses, whether written or not, through NIG s standard underwriting footprint. We have expanded our schemes and affinities team to meet that demand and to grow the book further. We offer a high level of ongoing support and can help develop schemes and affinities business with Marsh Commercial through manual or eTrade product solutions. To support this, we can deliver a range of coverage development solutions ranging from specific endorsement production for smaller opportunities to amended policy wording and fully branded documentation depending on the size of the opportunity. This includes: Development of bespoke wordings to support in new risk areas. The size of opportunity generally needs to be a minimum of 300K - 500K, although we will review each opportunity on its merits. All are written in a plain English style and all those that are the subject of this response have recently been reviewed and upgraded in terms of technical content, layout, clarity and look & feel. 32
Appendices NIG Motor Trade One Motor Trade One Policy https://nig.com/products/regional-traded-products/motor/motor-trade-one/ NIG Risk Assist https://nig.com/trading-support/risk-management/nig-risk-assist/ NIG/ Marsh Commercial Online Toolkit https://nig.com/trading-support/risk-management/nig-risk-assist/ 33
