Necessity is the mother of invention

Should you need proof that creativity is spurred on by adversity, look no further than the legal expenses sector. ARAG is rolling out new products, taking technology in new directions, and helping grow new business for our partners. All this, despite the challenges on both the political and legal landscapes.

Fee caps, whiplash reforms, increases in small claims levels plus Brexit, place special demands on our resources and business model. Because of this, we have already rebalanced our BTE and ATE portfolios and are able to actively seek new business from a variety of sources in both BTE and ATE sectors.

On the face of it, this is a complicated recipe with which to progress our second decade in the UK. However, nothing has changed in our philosophy of opening the doors to justice for everyone, whatever their financial status. The consistent accolades at awards ceremonies confirm our belief in the highest standards throughout the organisation: our by-words remain innovation, flexibility and service.

Elsewhere in this issue of the RAG we have a lot to say about the Insurance Distribution Directive, BTE developments and the need for employers to reconsider their commercial policies (CLP) now that employment tribunal fees have been scrapped. CLP has proved an enormous growth area, along with assistance services, and we aim to keep all BTE products affordable whilst providing top level cover and service. ARAG will meet the challenges of the market with solutions that benefit all our partners and policyholders.

Upcoming test cases will untangle some of the current impasse over clinical negligence settlements and we will ease some of the current solicitor ‘malaise’ through a new advanced disbursement product, aiding their cash flow.

Housing disrepair continues its strong growth and we are looking to more debt recovery and professional negligence for matrimonial business. Closer ties with solicitors through the pre-paid disbursement product will help introduce ARAG as the ideal partner for employers’ liability and motor business too. We already have our Practice Policy that covers all ATE cases in a firm.

I am pleased to say that we shall continue pursuing clinical negligence claims at the current level. And aft er the hysteria over discount rates earlier this year, insurers and government are getting closer to a more balanced view with a final figure that looks like it will be fairer to claimants.

Now is the winter of our… actually quite contented, thank you very much.

As anyone in the insurance industry knows, claims service can be the hardest thing to get right but great service can often go unappreciated. Winters are inevitably tricky for home emergency claims, which come in waves on the back of bad weather, leaving customers distressed and anxious. So, we’ve been particularly pleased with some of the positive feedback our claims handlers have been getting, as winter arrives.

“Lovely”, “Thrilled” and “Fantastic” are not words often used in the insurance claims process, but all are among the many plaudits offered by ARAG Home Emergency policyholders as we helped them through some of the stressful events that the recent storms brought with them.   

“A lot of our Home Emergency business is in the High Net Worth sector,” comments Head of Sales, Andy Talbot “so, customer expectations are understandably high. But that makes feedback like this all the more gratifying.”

It’s no secret that the key to delivering any service is setting clear expectations and meeting or surpassing them. Customers are generally understanding, even at the worst of times, but they need to feel that someone has a plan and the expertise to put things right, as quickly as possible.

“We don’t try to pretend that we never fall short of our own, very high standards and there are always surprises that old properties and a British winter can throw at you,” continues Andy, “But we’re the first to put our hands up if something doesn’t go according to plan, and the claims teams are brilliant at keeping customers informed and helping them through what are always really stressful times.”

“Quality of service has always been one of the key things that ARAG has differentiated on. So, we really have to deliver on that. As we head into another winter, I’m really pleased that we’re living up to the high standards that partners and policyholders have come to expect of us.”

The RAG - issue 16 - November 2017

It's this time of year again - when our bi-annual news bulletin is out !

You can flick through its pages and zoom in to read all our articles in our interactive flick book below.

 Also, you can download it here : The RAG, Issue 16 - November 2017

Sometimes doing the “right” thing leads to unforeseen consequences

A couple of “issues” have passed my desk recently which leave me with a smarting sense of injustice.

Take Insurance Product Information Documents (IPID)…

My own opinion is that IPIDs are inferior to Key Facts documents in the UK because consumers will receive less information about their insurance product than they previously would have been given.

For example, where products are created by a managing general agent, there is no requirement to show the insurer. More generally, IPIDs do not include information about making a complaint and do not allow exclusions that apply to a particular insured event to be lined up against the description of that insured event. Additionally, there is no space to highlight extra services which complement “what is insured” – such as telephone helplines and in-line legal documents which significantly enhance the value of products for consumers.

We have taken a very flexible approach to product development and have delighted in designing unique features that respond to the needs of specific target customers and give niche cover. As a consequence of our willingness to go the extra mile, ARAG IPIDs will need to reflect the many modifications that we have made. Our innovation has been wide-spread and we have hundreds of “non-standard” wordings to consider. Had we adopted a more intransigent approach and not deviated from our standard product specifications, delivering to the exceptionally tight deadline would have been very much easier.

We also have many “embedded” policies where we have integrated ARAG products into primary insurance products. The “primary insurer” is deemed to be the product manufacturer under these circumstances. We will liaise on an individual basis to supply content for their IPID in relation to the ARAG cover that has been embedded.

We continue to hope that the FCA will agree to a transitional introductory period which will allow us to fully review all of our offerings and create suitable IPIDs for all of those special profile customers. In the meantime, we will be contacting our agents to supply suitable IPIDs very soon.

And what about employment tribunal fee refunds?

While the abolition of unfair employment tribunal fees is a splendidly good thing, it was very disappointing to read that where settlements have been reached between the parties in dispute -with fees being included within the settlement figure, the employer will be unable to apply for a rebate. The employee, who would have paid the fee the first place (but recovered it as part of their settlement), can apply for the refund and will stand to benefit from a “windfall”.  It seems that employers who have “done the right thing” by settling the dispute are being penalised, while those who may have proceeded to tribunal, lost and received an order to pay will be able to obtain a refund.

This seems very unfair as escalating disputes to tribunal is surely a last resort. It is in the best interests of parties to arrive at an amicable settlement.

So, doing the “right” thing sometimes causes detriment however, we will always put our customers first. We remain committed to building products that work well and to raising customer awareness of the benefits they can access when they buy legal expenses cover.   

Why do you need High Net Worth cover?

Most High Net Worth clients are looking for that bit extra from their insurance.
At ARAG we offer comprehensive bespoke cover, higher limits of indemnity, backed by high quality legal advice and partner-led claims handling from solicitors who are experts in their field.

We provide enhanced family, home emergency and motor breakdown products, ensuring our cover is the perfect choice for your client’s needs.

 In summary, we offer:

• 24/7 HNW legal advice line
• flexible, tailored cover 
• pre-vetted, HNW preferred solicitors
• excellent customer service 
• account management
• award winning products & services

Why choose ARAG?

• Faster initial responses to claims notification and quicker initial assessment of claim 
  - 2 day service standard
• Claim handled by ARAG Senior Claims Handler
• Solicitor will be specialist in claim area
• Partner led claims handling at solicitors
• Enhanced service standards  with solicitor throughout claim

For more information please call us on 0117 307 2278.