Are you blacklisted? We reveal the addresses insurers won’t touch and the disturbing reasons why...

http://www.dailymail.co.uk/news/article-1383317/Insurance-blacklists-The-addresses-insurers-wont-touch-disturbing-reasons-why.html?ITO=1490

Birmingham generates one in 10 fraudulent claims

Honest motorists face soaring premiums as a ‘fraud epidemic’ sweeping the country causes insurers to blacklist certain postcodes in secret.

Motorists have seen a record 40 per cent hike in premiums over the past year, with the average annual comprehensive policy forecast to break the £1,000 barrier within 12 months.

Insurers say a major reason for this increase is fraudulent claims that are estimated to cost £2.7billion a year, adding £44 to the annual premium of honest motorists

Read more: http://www.dailymail.co.uk/news/article-1383317/Insurance-blacklists-The-addresses-insurers-wont-touch-disturbing-reasons-why.html#ixzz1LNaSH8zU
 
Confidential documents from a leading fraud specialist shown to Money Mail pinpoint areas across the country where insurers are putting premiums up even further because of high concentrations of fraudulent claims. And brokers say some insurance firms are refusing to cover motorists at all in certain areas.


Common frauds include staged accidents, often perpetrated by criminal gangs who deliberately cause innocent motorists to crash into them. Last week, three more people were jailed for a £5.3  million ‘cash-for-crash’ scam at Luton Crown Court.

Other examples include bogus injury claims — whiplash being the most common — and fronting, where parents cut costs by claiming they are the main driver on an insurance policy for their child’s car.

Each year, Keoghs — a law firm specialising in investigating suspicious claims on behalf of insurance companies — publishes the worst areas for fraud. But it also provides insurers with secret information on the worst postcodes. This list, which is not made public, has been obtained by Money Mail.


The top ten areas for suspicious claims are parts of Birmingham, Liverpool, Bradford, East London, Manchester, North London, Bolton, Blackburn, Southall and Oldham. These towns and cities account for more than four in ten suspicious claims.

The worst ‘blackspot’ is Birmingham — generating almost one in ten suspicious claims. This compares with fewer than one in a hundred in West London. But the analysis given to insurers also shows huge variations within towns and cities.

The postcode B8 — east of Digbeth in Birmingham — generated almost 13 per cent of suspicious claims in the city. Meanwhile, just over 1  per cent came from B15 in Edgbaston, according to 2010 analysis.

Areas that have seen the biggest growth in suspicious claims this year include Newcastle, Peterborough, Preston and Chester — all now rated as ‘fraud blackspots’.

James Heath, head of counter fraud strategy at Keoghs, said: ‘We are now seeing what can reasonably be described as a fraud epidemic across the UK.

'It is clear from these results that fraud is no longer restricted to the country’s most heavily built-up areas.’

The result is that even law-abiding drivers without a claim to their name who live in these areas can struggle to find affordable insurance. One insurance broker, based in London, told Money Mail about several quotes he had recently secured on behalf of customers where most insurers had refused to provide cover because of the area in which they lived.


One 58-year-old male driver living in Wood Green, North London — N22 — saw his premiums double from £727 to £1,598 when his policy came up for renewal this year.

Zurich, Ageas, Axa, Provident and Royal & Sun Alliance all refused even to provide a quote, labelling it an ‘unacceptable’ area. A customer living in E4 — Chingford, East London — had a similar problem.

The broker said: ‘There is no doubt some postcodes are blacklisted by most insurance companies because these areas are deemed to be too high risk.’ Other insurance brokers report a similar story.

Ian Crowder, from the AA, said: ‘It’s a bit of a postcode lottery. Certainly some areas are in danger of being blacklisted by certain insurance companies because they are seen to pose such a high risk.’

Graeme Trudgill, head of corporate affairs at trade body the British Insurance Brokers’ Association, said: ‘As with flooding, there are certain areas that insurers are just not keen on. We’ve heard of rates in some parts of Birmingham tripling.’

The insurance industry — spearheaded by its trade body the Association of British Insurers — says it is doing everything it can to crack down on fraud. In 2006, it set up the Insurance Fraud Bureau to detect fraud and expose criminal gangs. It pools the information of insurance companies and is helping police on 27 police investigations.


Glenn Marr, director of the IFB, said: ‘This fraud has an impact on the cost of insurance for genuine customers and the industry is committed to rooting out and bringing to justice those criminals who target insurers.’

An Axa spokesman said: ‘For areas where there is a high risk, we do refuse cover and we use historical claims information to help us determine these areas.

‘Our experience shows us that certain areas give rise to exceptionally poor claims, but these are not exclusively driven by fraud.

‘Axa employs a number of fraud prevention initiatives to ensure we are preventing certain individuals from getting cover rather than penalising large groups.’

See how your postcode affects your car and home insurance at www.thisismoney.co.uk/postcode

'My premium rose £300'

Stuart Lea saw his annual motor insurance premium with Direct Line jump from £800 to £1,100 when it came up for renewal this year.

Mr Lea, 33, from Birkenhead, near Liverpool, says he was baffled because he has an impeccable driving record and has built up 15 years of no claims.

‘Every year my premiums go up,’ he says. ‘It’s disgusting that honest drivers have to foot the bill for fraudsters.’

Mr Lea shopped around for a better deal using comparison website Moneysupermarket, securing an annual policy for £670 from Admiral.

Andy Goldby, from Direct Line, says: ‘We have witnessed an increase in both the number of claims and their severity in Mr Lea’s postcode, in particular relating to whiplash claims.’

"CASH FOR CRASH" - TOP 20 HOTSPOTS

See the latest article on Cash For Crash in the UK. Visit our sister site by clicking here

Nice 1! - A USEFUL FREE RESOURCE TOOL FOR BROKERS

FREE ONLINE CAR SECURITY CHECK

The team at Nice 1, providers of Theft Protect Replacement Vehicle Insurance, are delighted to provide access to a great new resource for UK motorists that is totally FREE.

Type a postcode and registration number into this free online tool, confirm the vehicle make and model, and you are then presented with a security rating for that car and the location it is kept.

This solves the age old mystery for UK motorists – how to get free access to information about how safe from crime their vehicle is, or how safe the vehicle they are planning to buy is, according to the area where it’s parked in and the type of vehicle it is.

This unique tool also provides the ABI security ranking, and explains how that system rates male and female drivers according to age. Few people know that a female under 24 or a male under 30 will get discounts for driving vehicles between one and 20 ABI groups. Insurance will go up rapidly after ABI 20, and most insurers will decline above ABI 33. Females over 24 will get discounts for driving vehicles between one and 33 ABI and insurance will go up rapidly after ABI 33. Males over 30 will get discounts for driving vehicles between one and 33 ABI and insurance will go up rapidly after 33.

The security rating is an estimate based on government and industry vehicle crime data. The data is combined to take account of where the vehicle is kept overnight, the vehicle's theft desirability and manufactured security. Scores range from 'excellent' - nine stars or more - to 'extremely poor' - one star. An 'excellent' score has an approximate probability of less than 1-in-1000 chance of being stolen, broken into or vandalised over the year and 'extremely poor' has a greater than 1-in-10 chance."

The tool draws its data from the ABI and the Thatcham vehicle security site. Thatcham is the research and development unit owned by the UK insurance industry.

So, whether your customer is thinking of buying a new car, getting or renewing their car insurance, or simply want to find out how secure their car is, click the link below or to the right of the page.

Brokers should do this on behalf of the customer, as the link directs to an alternative insurance portal.

Click the back button once you're done to return to these pages.

With compliments & kind regards

The Theft Protect Team at Nice 1 Limited

CHECK CAR SECURITY NOW – CLICK THIS LINK

THE TOP 10 SAFEST & RISKIEST PLACES FOR CAR THEFT - CAR CRIME UK 2009

double click the map to see it larger then hit back button to return here

The team at Nice 1 Limited regularly produce car crime information for the UK motoring public and to assist the marketing efforts of our authorised Theft Protect agents.

For the first time in the UK, Nice 1 are delighted to produce the 2009 Car Crime figures by Post Code area. The information contained on the map above and tables below is extracted from the full Home Office statistics. Insurance companies and intermediaries frequently publish similar data, however, their data is only drawn from the sample of their own customers. The information reprinted here is the most accurate and current information compiled from the car crime incidents recorded by the UK police forces.

Full UK car crime data is available, both as incident counts per town or city, and as the detail below, on the basis of a count per 1000 head of population. The national average for car theft is around 7 per 1000. The map and tables below provide an indication as to the vulnerability to car theft offences in the safest and riskest places in the UK.

THE TOP 10 RISKIEST PLACES FOR CAR THEFT

THE TOP 10 SAFEST PLACES FOR CAR THEFT

Nice 1 Ltd collate car crime statistics from Home Office and police sources in order to provide the UK motoring public with the most accurate picture of car crime across the country and in specific areas. In addition to the offences per head of population, information is also gathered about the number of incidents recorded per town and city.

Further details may be requested by e mail at the contact address at the foot of the page or by clicking the contact me button elsewhere on these pages.

CAR CRIME UK - NICE 1 LAUNCHES NEW ANALYTICS SITE

• The crime analysis team at Nice 1 Ltd are delighted to announce that a new site has been launched to provide "At-A-Glance" reviews of the recently released Home Office crime figures.
• The new site, launched to co-incide with the ITV1 series presented by trevor McDonald, presents information in easy to view formats, enabling the consumer and trade professionals to quickly identify crime trends by each geographical district in the UK.
• The reports are often incisive and frequently contraversial in their findings, placing a different slant on the variances between recorded police crime and the much larger incident numbers that go unreported.
  

To view the new site click here


Happy reading!


The Crime Analysis Team
Nice 1 Ltd

Car Crime UK - Going Up Not Down? Car Dealer Magazine Article

click the image above to see the article in full

The team at Nice 1 are pleased to report that a further article has appeared in the popular Car Dealer Magazine.

Car Dealer is circulated in print and electronic format to over 15,000 motor industry professionals across the UK.

The article, analysing the recent crime statistics published by the Home Office, provides an independent insight into the real picture of car crime in the UK.

The article findings come as Sir Trevor McDonald fronts a big six-part ITV1 series on car crime.

Producers say the series highlights the 170,000 cars stolen in the UK each year - with Police forces in Manchester dealing with a 'huge increase in criminals who break into houses to steal keys'.

Within all of this are several areas insurance companies and brokers should consider. After seeing the shows on TV, your customers have the topic fresh in their mind and may well ask you how they might ne protected in the event of car crime. . . . best to be prepared!

To view the article, click here or the image above.

Nice 1 provide Theft Protect Replacement Vehicle Insurance to the insurance and motor sectors. The company also produces regular up-to-date car and burglary data for the benefit of the UK motoring consumer and our insurance and motor partners.

Feel free to explore these pages and previous articles to find out more about how Theft Protect can help you, your customers and your business.

Car Crime UK - "Car Key Theft" - First Of A New Series With Sir Trevor McDonald

In case you missed it, Trevor McDonald presented the first of a new series on ITV last night, which takes a look at the work of specialist police car crime teams, focusing on two areas - Manchester and Devon and Cornwall.

To watch the program, click here or the image of Trevor above. A 6 minute highlight video of the program is featured lower down this page.

The program presents a front row seat into the work of the police fighting the battle against car crime in the UK.

As regular readers of these pages will know, the team at Nice 1 provide regular updates for the UK motorist on car crime in your area. This includes information about the most popular cars stolen by car thieves, top tips to keep your car secure, and choosing your car insurance provider.

CAR KEY THEFT

Following the release of the latest crime figures by the Home Office, Nice 1 are busy analysing the report so that we can keep you informed over the coming weeks. "Car Key Theft" as it has become known, is an increasingly worrying development in the modus operandi of the UK car criminal. Improvements in car security have made the theft of newer cars more difficult, so they take the dramatic next step, breaking into your house to steal the keys.

The trend is more worrying than the crime figures reveal though.

18,599 cars were stolen last year by stealing keys. However, these numbers are reported as "Burglary Dwelling House" or "Robbery" (for incidents such as car jacking).

This has the effect of artificially supressing the car crime numbers. One of the Home Office reports suggest car theft has decreased by 7.4% in 2008 against the 2007 incidents.

When the 18,599 incidents are added back to the car theft numbers, it reverses the trend to a 4% increase.

A copy of the Nice 1 analysis report has been sent to the Shadow Home Secretary, the Rt Hon Chris Grayling MP for his comments.

Nice 1 are the providers of Theft Protect, a unique like-for-like replacement vehicle insurance policy designed for victims of car theft.

Cover is available for up to 28 days, with a wide range of replacement vehicles to keep you mobile in the unhappy event that your car is stolen.

Theft Protect is available through a network of UK Insurance brokers, motor manufacturers, dealers and car finance companies.

INSURERS ENTER CREDIT HIRE ARENA - HOW WILL IT IMPACT BROKERS?

"A NEW DAWN FOR CREDIT HIRE"

An article in the Insurance Times today reports that AA/Saga plans to take its credit hire arrangements in-house in an attempt to save millions of pounds. The move could trigger other insurers to follow suit as frustration grows at the level of expenses incurred in the process.


To read the full article "A NEW DAWN FOR CREDIT HIRE" click here

The insurance industry has opposed the activities of credit hire firms since the emergence of the industry in the eighties. For over twenty years insurers have adopted an adversarial stance to the existence of credit hire as a concept, with both sides entering into protracted and expensive litigation on points of law. A number of legal precedents have been set down from the High Court and Court of Appeal as a result of the arguments between the two industries.


An insurer owning its own credit hire company is an interesting business concept, something which insurers have looked at for some time, and now AA/Saga has taken the plunge.


It will be interesting to see how this affects the AA/Saga relationships with other insurers. Will negligent insurers pay the AA/Saga credit hire claims any faster than the existing credit hire operators?

In a seperate Insurance Times article on the subject, Ai Claims Solutions commercial director Chris Shaw countered that not all credit hire companies had adversarial relationships with insurers. He said: “The issue was not about referral fees but about hire durations".


To read this article click here


On the face of it, this comment seems to be somehwat naive. Of course it's about referral fees, they are part of the problem the insurers want to remove. Insurers have been applying pressure to brokers for many months now regarding their relationships with accident management and credit hire companies. Insurers have threatened brokers with reduced commission levels if blacklisted credit hire and accident management companies are being supported.


The arrival of the comparison site aggregators, a prolonged period with soft rates and the current economic climate has forced brokers to seek alternative sources of income to supplement diminsihing margins from motor insurance. The accident management sector has become fiercely competetive in its search for non fault accident victims, offering increasingly lucrative inducements to brokers for such referrals.


Insurers have cashed in on the deal too, with many millions being paid in referral commissions to insurance companies by credit hire companies for the introduction of non fault accident policyholders. Commissions are paid for credit hires and personal injury cases, with referral fees as high as £800 being paid per case.

There have been instances of large insurer organsiations writing motor insurance premiums with 0% commission to increase market share. The business model of a number of these companies includes owning their own accident management company. Let us look at why such an organisation would write premiums at 0%.

Assume 1000 motor policies are sold with average commission of £75.00 = £75,000
A 20% claim ratio = 200 claims. Assume £500 income per claim = £100,000

These organisations have learned that there is a greater income opportunity from claims income than from policy sales.

Insiders from within both industries have long since speculated that this level of referral rates were not sustainable in the long term.

The same insurers receiving generous credit hire referral fees have also been exerting pressure on brokers for supporting credit hire companies!

These factors are undoubtedly part of the rational behind the development of the AA/Saga credit hire operation. With such a business, they will control their own exposure to such claims and undoubtedly generate significant income streams from those cases where their customer is the non fault party.


BROKERS

Of greater interest perhaps, is the potential impact insurers providing credit hire will have on insurance brokers in the UK.


The success or failure of the AA/Saga credit hire venture will either encourage other insurers to follow suit, or seek alternative strategies to combat the growth of the sector.

One thing is certain. The credit hire and accident management organisations will not take the competition lying down. They will use their considerable resources to protect their business models. The non fault accident market has become a race to see who can capture "First Touch" of the customer. The accident managers have become adept at the practice, which is undoubtedly why the insurers are now considering "playing them at their own game".

Other insurers may follow the lead of the AA/Saga team and develop their own credit hire solutions. This would have the effect of restricting the size of the potential accident marketplace, reducing income opportunities for brokers working with accident management companies.

Prudent brokers will not have put all their eggs in one basket and become over reliant on accident management referral income.

The more successful brokers have quickly recognised the benefits of adding value to the customer experience.

In a marketplace is dominated by price driven consumers, innovative thinking brokers will always succeed in securing and retaining business by providing enhanced service that the internet cannot compete with, qualified advice and quality products.

Brokers that have developed successful "Add On" strategies for such quality products are booming even in the midst of an economic downturn.

Related Broker Articles :-

"When choosing add ons it pays to go cherry picking" click here

"Top Broker Tips For Selling Add Ons" click here

UK SCRAPPAGE SCHEME IMPACT ON MOTOR & INSURANCE SALES

The Society of Motor Manufacturers & Traders (SMMT) have this week published the latest UK Scrappage sales. Much has been reported about how the scheme has had a positive impact on the UK Motor sector and this is most welcome.

To download the latest car registration figures for June and 2009 to date, listing all the manufacturers, click here.

In this article we examine the precise impact those sales have had on individual manufacturer performance and the sector as a whole.

To read the article click here As a UK insurer, broker or intermediary providing car insurance, you can significantly enhance the customer experience and your add on income by offering your customer Theft Protect Replacement Vehicle Insurance.

Details from http://www.theftprotect.co.uk/ and via the links on our blog http://brokerinfocus.blogspot.com/

Police warn drivers not to hide car keys at home... to avoid violent clashes with burglars

Drivers should not hide their car keys when at home because it risks a violent confrontation with burglars, a policeman has warned.

The controversial advice was given after a case in Clifton, Lancashire, where a 16-year-old burglar murdered a pensioner for his car keys.

Speaking after the killer was jailed for life, a vehicle crime specialist from the Metropolitan Police said: 'I'd rather they broke in and found the keys and nicked my car than have them wake me up in the middle of the night because I value my life and like a good night's sleep.'If we say hide the keys then we are actually putting people at risk of ending up in the sort of situation which happened in Lancashire.

'However, an official spokesman for the Met said the comments did not represent their official advice, which was to keep car keys out of view.

It is estimated that more than 50 people a day across the UK have their cars stolen by burglars who ransack their homes and drive off with the spoils in their victim's vehicle.

A total of 15,741 cars were stolen last year by burglars who got hold of the keys after breaking into victims' homes while a further 2,858 were taken by force in robberies and car-jackings.

According to insurance and car crime experts that figure is rising at more than 15 per cent a year.Around 11 per cent of the reported stolen every year are as a result of the keys being taken during a house burglary or violence against drivers.

In recent months police from forces as far a-field as Warwickshire, West Yorkshire, West Mercia, Northampton, Kent and Manchester have all released car key burglary warnings.

'The amount of car key burglaries we have been dealing with has increased significantly,' said Asmar Chaudry, a spokesman for Greater Manchester Police.

'It's because security systems in cars have improved so much that the only way you can actually get into them is by using the keys. It's not a problem that's restricted to one place, it's a nationwide phenomena.'

HOW WOULD YOU COPE IF YOUR VEHICLE WAS STOLEN ?

We sincerely hope that it will never happen to you, but the fact remains that no matter how much money is thrown at vehicle protection, the determined vehicle thief continues to ply his trade.

In the time it takes to read this page, three more vehicles will be stolen or taken without the owners consent.

MYTH: Every customer who has their vehicle stolen will be provided a replacement vehicle by their insurance company.
FACT: It is remarkable that only a small number of insurance companies offer any kind of solution, leaving the vast majority of the 30 million UK motorists exposed.
MYTH: But surely I will get a courtesy vehicle?
FACT: No courtesy vehicle will be provided whilst your car remains un-recovered (typically 10 - 14 days) and NOT when your vehicle is written off.

We are pleased to introduce you to Theft Protect, not previously available in the UK, protecting you in the unhappy event of your vehicle being stolen.

For a small annual premium, you can now obtain a like-for-like replacement vehicle facility for up to 28 days, allowing you to get mobile again with the minimum of fuss should the unhappy event of your vehicle being stolen.

Theft Protect is available from a UK network of insurance brokers. When buying your vehicle insurance, insist they include Theft Protect.

Click the links on these pages to find out more, or e mail us at enquiries@nice-1.co.uk

SCRAPPAGE SCHEME - THE PITFALLS

£2,000 incentive will be wiped out in just 88 days due to depreciation

• New vehicles purchased under the Government’s car scrappage scheme are set to lose £12.5 billion in depreciation after just one year
• Even with the £2,000 scrappage bonus, motorists buying the UK’s top ten bestselling new cars are still set to lose £527 each month due to depreciation in year one, totalling £9.5 billion
• On average, the initial £2,000 “cash for bangers” bonus is wiped out in depreciation in just 88 days of owning the new car
• Purchasing one of the top ten most popular new cars costs £16,232 on average, this value plummets by 51% in the first year alone
• The UK’s best-selling car – the Ford Focus Style – loses £8,635 or 51% of its value in the year one
• Drivers are urged to read the small print on car insurance policies as the write off value varies substantially between policies

New research has revealed that vehicle depreciation is set to be the ‘thorn in the side’ of the Government’s new car scrappage scheme.

In fact, the £2,000 incentive will be wiped out in depreciation within just 88 days of purchasing a new vehicle. With 1.5 million motorists tempted to cash in on the scheme, these consumers are set to lose a total of £12.5 billion in just one year.

Furthermore, even with the Government’s £2,000 incentive, motorists buying the UK’s top ten best-selling new cars are still set to find themselves £9.5 billion out of pocket due to depreciation in the first year, equating to a loss of £527 each month.

On average, the value of a new vehicle depreciates by £8,321 within the first year of driving it off the forecourt. This means the initial scrappage bonus is wiped out more than four times over within the first year due to the extent it depreciates in worth.

However, despite the harsh reality of vehicle depreciation putting the Government’s £2,000 scrapping bonus in a measly light, the research highlights how consumers are still attracted to the other benefits the scheme may bring. For example, the environmental benefits such an initiative could generate is a persuasive factor, with 37% of interested motorists saying their main reason for participation in the scheme would be to swap their car for a greener model.

Interestingly, nearly one in ten (8%) would-be car swappers cited that their main reason for partaking would be to ‘do their bit’ to support the struggling car industry.

Table 1: Depreciation of the UK top ten selling cars (against purchase price)

Double click the table above to see the figures more clearly.

Source: Depreciation figures from sales volumes from SMMT. (Averages weighted against SMMT sales data)

Levels of vehicle depreciation are based on various factors; such as the popularity of the car, the number of vehicles manufactured and the perceived value or quality of the brand among consumers.

The UK’s top ten best selling new cars on average cost £16,232 yet they lose over half their value (51%) in the first year alone. The UK’s best-selling car – the Ford Focus Style – loses £8,625 or 51% of its value in the first year alone. The worst performer is the UK’s 4th best-selling car – the Vauxhall Astra Hatchback Life – which suffers the highest level of depreciation in its first year at 67%.

On a more positive note, the UK’s third best-selling car – the Ford Fiesta Hatchback – depreciates the least, losing 38% of its value in the first year. It also costs a more consumer friendly £12,195.

The Government’s car scrappage scheme has been introduced to give the ailing motor industry a much needed shot in the arm by enticing motorists to participate with a £2,000 incentive.

However, whilst this is a positive bonus for consumers, it seems even this payout can’t hold its weight against the magnitude of vehicle depreciation, which dents the value a car from the moment you drive off the forecourt.

When choosing a new vehicle, motorists should ensure they research the rate of depreciation of their desired new car, as research highlights how some of the top ten most popular vehicles hold their value far better than others.

Any motorists tempted to take advantage of the car scrappage scheme should research the cost of insuring their desired new vehicle as a matter of priority, as the cost could be significantly higher than they are currently paying for their old banger.

All drivers who are planning to switch their old cars for a newer model need to be prepared for a hike to their premiums of up to 30%.

For example: A 40 year old male with 9 years no claims who currently owns a 1999 Ford Focus Zetec pays £154.66 for his car insurance. If he was to trade this in for a 2009 Ford Focus Zetec his insurance would be hiked to £200.98 – an increase of 29.9% for the new car.

BEWARE OF THE ADMIN COSTS, CANCELLATION FEES & INSURANCE PREMIUM HIKES

Consumers should also be aware of the extra administrative costs associated with changing an existing insurance policy.

When it comes to making such a change, there are two choices available; consumers can either buy a completely new policy or amend their existing policy.

Whichever choice is made, a mid-term adjustment fee is likely to be incurred and this costs on average £15.94. Alternatively, a hefty cancellation fee charging anything up to £75 may apply.

These extra charges mean that insurance providers are likely to be the winners of the car scrappage scheme far more so than consumers, as they will cash in on drivers making these mid-term policy adjustments.

Finally, consumers must read the small print on their insurance policy, as the write off value on insurance policies varies substantially.

Out of the insurers surveyed only eight providers replace a brand new vehicle written off in an accident within the first 12 months with an identical ‘like for like’ vehicle. Notably, Saga is the only insurer to offer this within a 24 months timeframe. Other providers, such as Admiral, Diamond and Elephant actually factor in depreciation, so if the car is written off in the first month of ownership the driver could lose several thousand pounds.

Table 2: Insurers ‘like-for-like’ replacements

*If vehicle is written off per terms and conditions of policy

Notes:-

1. 1.5 million drivers are likely to take advantage of the initiative – source Experian http://www.moneyfacts.co.uk/Article/81606/Scrappage-scheme-could-tempt-1-5-million-people.aspx

2. Average depreciation on a new car is £8321.10 in the first year, which equals £693.43 per month. Minus the £2,000 offset by car scrappage incentive this is £6321.10, which equals £526.76 per month.

Average 1 year loss multiplied by amount of people potentially taking advantage of scrappage scheme. 8312.10 x 1 500 000 = £12,481,650,000.00 Net loss against scrappage scheme multiplied by amount of people potentially taking advantage of scrappage scheme £321.10 x 1,500,000 = £9,481,650,000

3. Average depreciation on a new car is £8,321 in the first year. £8,321 divided by 365 = £22.79 per day. £2,000 divided by £22.79 = 87.75 days.

4. All figures based on 31,245,416 cars in use in the UK according to Research Insight
(June 2008).

Article source : www.uSwitch.com

Broker Feature - Ashbourne Insurance

click the image above to read the newsletter

THANK YOU PETER!

The team at Nice 1 Limited would like to extend a big thank you to Peter and the team at Ashbourne Insurance Brokers, for featuring Theft Protect on the front page of this month's newsletter.

Ashbourne are a great supporter of the Theft Protect product and represewnt an excellent example of a customer focused insurance broker.

If you would like to include Theft Protect in any of your promotional offerings, please contact the team at Nice 1 on enquiries@nice-1.co.uk

In the meantime, to see how Peter is successfully promoting his business click here to read or download the company newsletter in full.

Broker In Focus - April 2009 Bulletin

Click here or the image above to view full bulletin

NEW RESOURCES FOR UK INSURANCE BROKERS

New broker online resources from Nice 1 Ltd, the team behind Theft Protect are proving popular among insurance intermediaries.


This site, and the consumer awareness portal at http://theftprotect.blogspot.com/ contain articles and latest news about UK Car Crime and Car Insurance.

The bulletin details way that the Nice 1 Team support brokers in their efforts with Theft Protect, and provide links to articles on the consumer site where we keep the UK motorist appraised of the need for adequate insurance.

Click the link below or the thumbnail image of the bulletin above to view the full bulletin. We look forward to supporting your business soon.

Kind Regards

The Nice 1 Team

Motor Insurance : When Choosing Add Ons . . . . .

IT PAYS TO GO CHERRY PICKING!

When it comes to choosing which add-ons or optional benefits to promote to customers, agents tell us that they have a number of things to consider.

• Which ones will my customers really appreciate, need and buy?


• Should I offer them, at point of sale or later?


• Individually or packaged in a suite?


• Do I add it automatically, assumptively with an opt out or upsell later?


• Will the add on provide a real customer benefit?


• Would the add on minimise customer disatisfaction in the event of a claim?


• Is there a good margin for my business with this add on?


• Is this add on fairly unique, will it enhance my service levels?

With so many add on products available, we can understand the dilemma. Not only do you have to consider the customer needs, but you also have to decide what commercial and operational benefits the product would deliver to your business.

Many people often already have breakdown cover in place, and frequently have legal expenses cover included with their home insurance, so they are conscious of not paying twice for the same thing.

An area that always appears high on the customer shopping list is a guaranteed replacement vehicle.

It is remarkable that very few insurance companies offer a replacement in the event of a theft or write off. Motorists often assume that a courtesy vehicle will be provided in any eventuality.

NOT SO !

No courtesy vehicle will be provided whilst a vehicle remains un-recovered (typically 10-14 days, if at all) and NOT when the vehicle is written off.

How would your customer cope if their vehicle was stolen? How would it impact on your business when they discover no courtesy car will be provided?

Theft Protect was introduced to fill the courtesy car gap. For a small annual premium, customers can purchase a policy that provides a like-for-like replacement vehicle (car/van/bike or plated taxi) for up to 28 days in the event of a theft related incident or following an accident where a vehicle is written off.

To find out more about the groups of vehicles provided, click one of the links at the top right of this page.

Theft Protect is promoted through a UK network of approved brokers, dealers, manufacturers and finance companies, who can arrange immediate cover online (regardless of the insurance renewal date).

If you would like to add Theft Protect to your product range ans start enjoying the benefits of promoting this product to your customers, simply e mail us at enquiries@nice-1.co.uk or telephone us on the number in the contact panel at the foot of the page. We will help you get started immediately.

Alternatively, click here to complete the simple online registration form, it only takes a few minutes

So, when it comes to choosing your motor insurance add ons, for an excellent value policy that your customer will truly appreciate, cherry pick Theft Protect!

P.S. You might like to read how we have helped Theft Victims across the UK, click this link to read how the policy helped them.

Happy Theft Protect Customers

Whilst we would never wish a vehicle theft or write off on any of our customers, it is inevitable that there will be thefts where customers need the service provided by Theft Protect.



The pleasing aspect of dealing with claimants is the sense of relief the product provides. Almost every customer we speak to after a Theft is distraught when they first contact us, and it gives us immense pride and pleasure to restore their mobility, often within a matter of hours.



Minimising the downside of theft incidents has a knock on effect for the selling broker. Customers thank the broker for selling them a Theft Protect policy, and the unanimous verdict is that the policy represents excellent value for money.



Here then, are a few of the circumstances where we have helped Theft Protect policyholders, with their reactions and comments about the brokers' involvement.



Mr C from Glasgow who had his Mazda Tribute stolen and burnt out a few days before Christmas. Theft Protect supplied a vehicle on Christmas eve. Mr C commented that it had saved his Christmas as he had so much running around to do. He immediately telephoned the selling agent to make sure the policy could be renewed. Fortunately, he had purchased a 4 year policy, so he has plenty of time!



Mrs N from Tipton in the West Midlands woke up to discover her Hyundai Santa fe had been stolen. As a mother in full time work, she faced losing wages and suffering a massive inconvenience. Her vehicle was never restored and she used the hire time wisely, thanking her broker and ensuring they had all they needed to sort her settlement cheque from the insurer.


Mr A and his partner both work in a busy insurance broker in Birmingham. The family Fiat
Grande Punto was nicked over a weekend and he was concerned that one or both of them might have to take time off work. As it happened, Theft Protect provided a vehicle within 24 hours, and as he was close to the claim, he was able to apply the pressure to his insurers for the cheque. Needless to say, Mr & Mrs A are both now keen supporters and promoters of the product to their customers, having had first hand experience.


Mrs W from Hertfordshire fell victim in the school holidays when her Ford Mondeo Zetec was stolen. When provided with her replacement vehicle, she commented that she didn't know how she would have managed with kids off school and family shopping to do. The broker contacted us to report that she had telephoned to thank them for the Theft Protect service.


Mrs G from Northern Ireland, was heavily pregnant in the summer of 2008 when the family BMW 320 Sport was taken from the driveway. Mr G worked away, so there was no possibility of borrowing his company car. She had a diary full of hospital appointments, pre natal classes and looking after her other children. This one brought us particular pleasure, helping a lady clearly in distress is our speciality! She was among the first policy holders to purchase Theft Protect in Northern Ireland, so we were exceptionally pleased to help. Mrs G is a family friend of the broker, so once again we have won a great supporter in the business sense too.



Mr B is a frail and elderly gent who needs his vehicle for even the short journies. When some heartless thieves broke into his house, stealing the car keys and his Rover 75 Classic as they left, he was absolutely distraught. He was due to drive down to Devon the next day to go to a family get together. Happily, Theft Protect came to the rescue and he was on his way. Over a year ago now, Mr B insisted his broker renew the Theft Protect cover.


Mrs P, from Newport, South Wales was another working mum. Her Volkswagen Passat was her pride and joy until liberated from her possession. She was poorly when she rang up to report the claim and didn't feel up to driving for a couple of days. No problem, Theft Protect provided the vehicle when she felt better.


Mr P was the first customer to claim from the Coversure branch sales. A businessman, he was extremely concerned about the potential loss and inconvenience to his business when his LWB
Mercedes Sprinter was stolen. He knew only too well the potential interruption to his business having suffered a previous theft and no one was able to help. His business runs a small fleet and he purchased a policy for each vehicle. A replacement LWB van was supplied same day, and as he purchased the 21 day cover, he was able to achieve settlement before the hire ended. A very happy customer who praised his broker for introducing him to Theft Protect.

Mrs B from North London had a momentary lapse in concentration and piled into another vehicle, writing her own vehicle, a Ford Fiesta Azura off in the process. Her anxiety was lessened when Theft protect provided a replacement vehicle same day.

Mr A from London was concerned about getting to and from work when his Lexus GS430 Sport was stolen overnight. Although he had only paid for a 14 day Focus type vehicle, he was able to upgrade to a lerger vehicle (at his expense), gaining the benefit ot the Theft Protect commercial rate. He was pleased that the cost he incurred was significantly reduced by the cost allowed under his Theft Protect policy, and particulalrly pleased that he had purchased the 21 day policy.

Mr B from Sandwell, is a market trader, whose Ford Transit van was stolen the week running up to Christmas and written off by the offenders who used it in a ram raid at a Currys store, stealing electrical goods. He was panicking because the Christmas week was so important for his business. His anxiety turned to delight when a replacement van was supplied in under two hours. He was quick to telephone his broker to praise the product and the service that had saved his Christmas.

Ms H is a police civilian worker, working shifts in South London. Driving her Renault Megane on an extremely icy road surface, she skidded into another vehicle, writing her own off in the process. After numerous telephone calls without getting any assistance, she telephoned her broker who reminded her that she had a Theft Protect policy. Due to start a night shift that evening, with no other means of transport, she was delighted with the hire vehicle that arrived from Theft Protect four hours before she was due to leave for work. She had been considering shopping around for her insurance renewal, but will now stay with the Redditch based broker as they were the only organisation who had truly looked after her interests.

Mr H from Hursey in Kent is a self employed long distance lorry driver. His vehicle, a Jeep Cherokee is essential transport for him as he often has to drive to the lorry park, some 6 miles away at 3 or 4am in the morning, often not returning to his vehicle until late at night. When his vehicle was stolen, he feared losing income as he knew of no one who could help. His broker again reminded him that he had purchased Theft Protect a few months earlier. A vehicle was supplied in time for Mr H to get to work without losing any time or money.

Mr R-S (double barrelled) from Wednesbury purchased a Theft Protect policy for his Gilera DNA 125cc motorcycle. Only qualified to ride motorcycles, using the vehicle as his transport to and from his shift work, he was extremely anxious to discover his bike and documents stolen from his driveway. He was fully expecting to lose time from work as he believed replacement motorcycles would be hard to hire. The claim was reported early one February morning, he had his replacement motorcycle delivered, fully insured by early afternoon, well in time for his afternoon shift. before leaving for work, he telephoned his broker to thank them for providing Theft Protect.

And one last amusing tale ....

Mr S, a self employed educational consultant from South Wales bought a Theft Protect policy earlier in 2009, having fallen victim previously and been without transport for four weeks. When his broker offered him Theft Protect he said yes immediately. Early in April, he parked his car in a side street in Cardiff whilst visiting a customer. On return, he found the vehicle was missing. He reported it to the police as stolen and contacted Theft Protect. He was delighted with the service offered and said that he would have the hire vehicle delivered the following morning. That afternoon, he caught a bus into town. Ever vigilant after the incident, he knew he would pass the road where he had parked his vehicle. As the bus approached the road prior to the one where the "incident" took place, he glanced out of the window, and there was his vehicle! Parked exactly where he had left it... He had returned to the wrong road, convinced his car had been stolen, the suspicious fellow! He was good humoured about it and had telephoned his broker beforehand to sing the praises of Theft Protect!

Theft Protect working to bring customers to you

One of the greatest challenges faced by insurance brokers is knowing which products to offer their customer.


One broker summed it up for us recently. He told us that he listens carefully to customers when they complain about NOT being covered for a particular risk. "This is my trigger" he told us, "to go and find the solution that eliminates or minimises the customer risk".


Victims of car theft frequently believe that their courtesy car provisions MUST cover them in the event of a theft incident. It is only when a claim arises that they discover that no white knight is coming charging to the rescue.


Enter stage left, Theft Protect.


Theft Protect was created as a result of brokers reporting that customers were disatisfied, often angry when they discover that courtesy vehicles do not typically extend to theft or fault write off incidents.


As you will know, Theft Protect is a unique stand alone policy that provides a like-for-like replacement vehicle (including commercials), for up to 28 days in the event of a theft or write off. (Write off provision not currently included for taxi and motorcycle groups).


Knowing that the majority of the 34 million UK road users are unaware of the lack of cover, we have set ourselves the challenge of raising consumer awareness so that enquiries may be driven directly to your door.


Here are a few of the strategies :-


Consumer Blog http://theftprotect.blogspot.com/

In the few short weeks that our customer awareness blog has been live, the site has received hundreds of visits from UK motorists keen to find out more about the cover.

• Registered blog with Google, Yahoo & main search engines
• Site entered on leading blog directories
• Multiple broker & insurance industry links
• Presence on social networking sites, myspace and facebook

Joint Ventures & Business Promotion

• Working with brokers approaching trade bodies & commercial clients
• Actively promoting to police, emergency services, and larger captive groups
• Affinity groups - utility companies and outbound selling organisations
• Working with British Chamber of Commerce on a local and national level to promote Theft Protect awareness among 80,000 chamber member companies.
• Motor trade approaches to manufacturers, finance & leasing organisations for fleet and company vehicle business

The team at Nice 1 would be keen to hear from brokers who would like us to attend joint meetings with prospective fleet and commercial clients.

We would also be keen to hear any broker suggestions for growing our mutual businesses through joint ventures and merketing techniques.

As enquiries continue to rise in number, we will require brokers around the country to register their interest in dealing with the enquiries through to conclusion, including the sale of the Theft Protect policy(ies).

To register your interest, please contact Nice 1 Limited via e mail at : enquiries@nice-1.co.uk

Top Tips For Selling Add Ons

INSPIRED THOUGHTS FROM SOME OF OUR BROKERS

On our travels around the UK Insurance Brokers, we frequently hear of how difficult the market has become. Once the insurance salesman visited you, then you visited his office. Now you pick up your phone or click your mouse. Direct writers and the internet has accelerated the direct phenomenon.

In spite of the adversity, we come across brokers every day who have found opportunities to grow their businesses.

The brokers that we witness embracing Add-Ons as a means of recapturing previously sacrificed margins are an excellent barometer for one way forward for insurance brokers.

Whilst some brokers struggle to get beyond the price issue presented by bargain hunting customers, many others recognise the changes that are still occurring in motor insurance.

Motor insurance renewals have tradionally been viewed as an annual chore, both for the customer and the broker. The more enlightened brokers now see capturing the core policy as the first point of contact, with an existing or new customer. Add-ons represent a wonderful opportunity for a business to improve the customer experience, and to offer the customer excellent value products that he really does need.

Here are a few Top Tips from some of our brokers who are achieving success with their add on strategy :-

• Develop a disciplined strategy for approaching the customer asfter securing the core policy
• Be prepared to give a little on commission for core products, regain it with add ons
• Research your customer needs, survey your customers to identify what products will suit them
• Whatever policy you are selling, acquire renewal dates and other essential data relevant to future sales
• Get out of the midset of selling everything or nothing at a fixed point in the year
• The more frequently you apporach and successfully sell products your customers want, the higher they will value your services at renewal
• It is cheaper and easier to sell more to existing customers than to pay for new ones
• Invest your money in an outbound selling strategy to existing customers first
• Insist on stand alone products that do not have to be sold concurrent with renewals, this frees you up to approach customers all year round
• Consider packaging two or three add ons together in a special deal. Many brokers achieve success offering three products for the price of two. Some add ons come cheap, even free to the broker and can be used well for these sort of promotions.
• Demonstrate value. Offer something like a "Gold" "Silver" and "Bronze" package. Customers like excellent packages representing great value.
• Lose your fear of "bothering" the customer. Brokers are professional advisors, your customer needs and wants your advice.
• Stop making excuses for making money. The old days of customer retention with no effort are dying fast.
• The transaction isn't over when you've secured the core policy, it's only just begun. Properly planned strategies for outbound calls will pay dividends.
• If you lose the core policy at renewal, don't give up! He doesn't become someone else's customer just because he has moved his main policy. You have opportunities to shine with add on policies and the service levels behind them. The new broker may upset the customer during the year and place him on the verge of returning to you. Give them every encouragement!
• Wherever possible, move away from the focus on price, concentrate on highlighting the increased levels of service and protection provided by the add on.
• Be persistent!

Brokers adopt different strategies for the way that they sell Theft Protect. It all really depends on how significant the price issue is to your business.

The three main choices brokers have illustrated to us are :-

• Compulsory sale - included with every policy
• Assumptive sale - included with quote giving customer opt out facility
• Upselling - selling the core policy first, then either upselling immediately or approaching later through outbound calling or other method.

Each has its pro's and cons.

Compulsory sales generate the highest volume, however they necessitate a lower premium. Brokers adopting this tactic tend to generate more income and profit due to the volume. Brokers however report that there are only so many add ons that can be succesfully built in before the overall price to the customer appears less attractive. Keeping the commissions low is key to the success in this category.

Assumptive sales work well. Brokers achieve as much as 75% take up in this category, again by reducing commissions, though not to the extent of the compulsory sale. The downside is the opt out rate can vary from region to region.

Upselling works particularly well once a broker has defined the strategic plan to outbound call the customer, or ensure the product is mentioned once the core policy is secured. The downside is more broker driven, by the attitude towards price as the most important factor.

We have examples of brokers that are selling Theft Protect stand alone, regardless of whether they hold the core motor policy. Some sell Theft Protect to their home or commercial customers, capturing motor details in the process. Brokers are successfully using this strategy in different parts of the UK. If you have yet to get started, what is stopping you?

There are plenty of innovative brokers out there with strategies that work. Become one of them.


These pages will continue to put forward broker ideas and inspired techniques that work. Share your successes here and hopefully you will find tips that will help you too!

Theft Protect - Features & Benefits

Customer Benefits

• Immediate like-for like replacement vehicle for up to 28 days
• Theft , Attempt Theft, Unauthorised Take, Vandalism (new!) & “Fault Write Off” cover
• 10 passenger car (2 prestige), 3 cv, 3 motorcycle & 7 Private hire vehicle groups
• Avoid exposure to car hire costs, typically £300 for 14 days hire of a Group A vehicle
• Can be purchased in 1,2,3,4 or 5 year multiples
• Stand alone, not tied to buying other products (Now generating significant interest for aggregator brokers)

Broker Benefits

• Private & Commercial Vehicle Cover
• 10 passenger car (2 prestige), 3 cv, 3 motorcycle & 7 Private hire vehicle groups
• 14, 21 & 28 day options available
• 1, 2, 3, 4, 5 year options available
• Provision For “Write Off” Customers
• Broker sets own selling rate/commission
• Simple on-line processing & certificates, cover arranged in minutes
• Full Marketing Support
• Increase your product portfolio
• Generate additional revenue streams
• Sell standalone to capture renewal dates for core policy marketing
• Fully functional in CDL as part of quote process & stand alone in Schemes Engine 110
• Can be sold in conjunction with other broker software (New … csv data download facility)
• Up-to-date crime statistics available to assist broker marketing efforts
• Customer awareness flash presentation available for broker websites
• Can be built in to brokers’ Quote n Buy facilities (Brokers can have links and/or implant product onto their site).
• Adaptable to multi site & mixed profile brokerages.
• Fulfillment facility available for volume capacity.

A Few Endorsements

"It's a very easy sell, once you actually talk to the client about it. Don't be afraid to talk about it at the same time as you're selling a motor insurance policy because you'll find clients are extremely receptive to it. It's now our second highest performing add-on product - brokers just need to embrace it "

Mark Lee, Operational Development Manager, Wesleyan General Insurance.

“Theft Protect has proved to be a resounding success within the sales teams at our various companies. Like most brokers we sell a variety of add-ons, some more successfully than others and Theft Protect definitely comes into the more successful category. Without doubt a very worthwhile product.”

Mervyn Vaughan, Operations Director, Markerstudy Retail Group.

“We offer Theft Protect to all of our customers. The prices are pitched sensibly so do not affect our motor retention. The claims service is excellent and we don’t have the worry of a customer without a vehicle for these incidents. We reached the 100 policy units in no time!”.

Brian McCullough, Sam McCullough Insurance, Newry, N.I.

“Theft Protect is our easiest add on product. It’s so simple to explain and sell in our call centre and the majority of our customers want the cover. The fact that it’s now available in CDL and its flexibility as a stand alone product makes it a natural product for our outbound teams to sell mid term. The potential to capture more core business with it is excellent.

Stephen Jones & Eddie Weekes, Directors, Tick Direct