Yet another successful BIBA Conference finished for the year

So there we have it, BIBA 2012 has come and gone for the year, and what a success it was!

ARAG spent months planning and organising their presence at this massive yearly conference, which was held in the bustling city of Manchester; one of the most popular BIBA destinations. We were very pleased with our stand which incorporated the new brand strategy. With free goodies and beverages, the stand remained busy throughout with delegates, and lots of good leads were generated.

Amongst nearly a full house of ARAG management and Business Development Executives, we were pleased to welcome Dr Wolff Graulich, who joined us from Dusseldorf; our ARAG Germany headquarters.

The first day at the conference went well and was extremely productive, so it had to finish just as well - some fine dining with guests at Vertigo; set in the heart of Manchester. The beautiful restaurant is spread over five floors, offering modern elegant food in exquisite surroundings. With a wine and cocktail range as diverse as their creative food, there was time after the evening meal to catch up and relax.

We’ll look forward to BIBA returning next year, where it will be held at the ExCel Exhibition Centre in London. Plans for next year’s stand are already in progress with lots of creative ideas flowing through our marketing department, so watch this space!

Landlord’s Emergency Solutions, the perfect pesticide?

Landlords of residential properties will often encounter problems with tenants but what about smaller unwelcome visitors taking up residence? Pests can not only cause damage to a property but create an uncomfortable living environment. There are also difficult conversations to overcome with tenants as to whose responsibility it is to get rid of the pest problem. ARAG’s emergency assistance policy for landlords provides the solution.

ARAG’s expanding range of emergency assistance products includes Landlord’s Emergency Solutions which has been designed specifically for landlords of residential property. This cost-effective insurance product provides assistance from a qualified contractor if an unforeseen event makes the property unsafe to occupy or causes actual or potential damage to the property or its contents. Insured events (see list below) include vermin infestation, something that marks Landlord’s Emergency Solutions out from many others.

• Breakdown of the main heating system
• Plumbing and drainage problems
• Damage to or failure of locks and windows
• Breakage or failure of the sole toilet unit
• Loss of the domestic power supply
• Vermin infestation
• Emergency alternative accommodation for tenants if the property is unsafe to occupy.

So what other benefits can your clients expect? Our helpline is available 24 hours a day, 365 days a year and the costs associated with the call-out charge, parts and materials and labour costs will be covered to an agreed limit. As always there are terms and conditions, but if you would like to offer this product to your clients, do not hesitate to contact us for more information.

Justice for business and supporting growth

On 8 May, the Ministry of Justice (MoJ) published a report; Justice for Business, summarising its programme of reforms. According to the document, these reforms are aimed at transforming the justice system by making it more effective, less costly and more responsive to the public. So how does it measure up?

The report highlights the MoJ's progress against their Action Plan for Growth in the Legal Services Sector which was published May 2011, and its achievements under the coalition government.

“[The MoJ is] supporting increased competition and growth within the UK legal sector by implementing Alternative Business Structures (ABS)”. In October 2011, the MoJ began legislation allowing the creation of ABS; provided for non-lawyers to partially/fully own, or to control firms providing legal services. Some legal expenses insurers have taken steps to become an ABS but at ARAG, we have no intention to join up. Instead, our aspiration is to work with legal practices as partners, not compete against them.

"We [the MoJ] are working to ensure that costs for participants in civil court cases are proportionate.” ARAG is a member of the Consumer Justice Alliance (CJA), which has been formed to highlight the impact that Lord Justice Jackson’s proposals on civil litigation will have on injured victims. Despite opposition, the reforms, contained within Legal Aid Sentencing and Punishment of Offenders Bill received Royal Assent on 1 May 2012. The government is now considering other measures necessary in the implementation of the Act such as the introduction of Qualified One-way Cost Shifting (QOCS), which could have a negative impact on third parties insurers and local authorities.

“The MoJ is moving towards implementing fees for employment tribunals. This will ensure that tribunals are able to focus on genuine claims and help to avoid business being faced with unnecessary or unfair costs.” These changes aim to encourage potential claimants to consider the strength of their case, which they hope will lead to “more realistic expectations for individuals and greater certainty for employers.” There have been mixed reactions to these changes but ARAG is closely following developments to ensure that our products provide the best cover for clients.

“We [the MoJ] are taking forward measures to reform the civil justice system, helping individuals and businesses resolve disputes.” The MoJ is implementing a range of measures which will benefit businesses by making dispute resolution quicker and less gruelling. These include proposals to speed up the process of resolving small claims, increase the small claims limit from £5,000 to £10,000 and refer more cases to a Small Claims Mediation Service. ARAG is working in partnership with Go2mediation to provide an online mediation service. The aim is to reduce costs of litigation and save policyholders the time and stress involved in court proceedings.

QuickQuote re-launch – Quote in 60 seconds

ARAG’s online quotation system for commercial legal expenses insurance has received some major upgrades, and is now known as QuickQuote. This new online quotation engine is designed to make it easier and more flexible for brokers to use.

ARAG was voted “Best legal expenses provider” in 2010 and they were congratulated for their “quick and efficient” online quotation system. However, they have further improved on their original system, which has led to this re-launch of a much more efficient quote engine, thus making it one of the fastest quote-and-buy facility in our market.

QuickQuote offers an extensive range of enhancements, including:

• Quotes in just 1 minute
• Simple application form with keyword explanations, training material and “how to” presentations to guide brokers through the process
• Immediate documentation which can be printed straight from the website
• Quotations and hold-cover notes which can be emailed directly to a broker’s email for convenience
• New search facility for existing quotations, making it easier for them to be found, edited and resubmitted
• Variable commission rate for brokers, from 0-25%
• No claims discounts, different levels of indemnity and hold-cover options

“The majority of ARAG’s business arrives under scheme arrangements, although the demand for standalone polices remains high.  A significant number still require individual rating, this is what we had in mind when we enhanced the QuickQuote facility,” says Andy Talbot, Head of Sales at ARAG.

Access to QuickQuote is restricted to agency partners of ARAG, if you are not currently an agent with ARAG; find out more on our website: www.arag.co.uk

Added value products – getting it right

Having run an insurance brokerage in the past, I still remember the regular letters from my motor insurance providers telling me that they were reducing my motor commission. As income from that source was under constant downward pressure, it was only natural that you would examine all of your options for maintaining or even boosting income. Therefore, the ancillary products which sat alongside the main policy became of critical importance to balancing the books.

The days of having an all-inclusive price for the main policy and all of the additional add-on products, such as legal expenses, are over. Nowadays, it is common sense that customers should know how their insurance premiums are made up.

Mandatory commission disclosure did not happen but high margins are causing concern among our betters. The FSA is now on the case and no doubt their successor will follow suit, so now is a good time to make sure your house is in order.

Here are a few thoughts to be going on with:

1. Optional add-on insurance: State this clearly and price it separately
2. Compulsory add-on insurance: Clearly point this out to the client
3. Preferred provider(s) for add-on insurance: Think carefully if the sale is advised or non-advised and reflect this in your terms of business
4. Mis-selling scandals: Avoid this by backing up your add-on insurance with a ‘demands and needs statement’
5. Documentation: Ensure that your clients receive the correct documentation for the policy they have bought
6. Margins: Consider carefully what a reasonable margin would be
7. Find out more: For further advice, facts and figures on selling optional add-ons read the FSA report: http://www.fsa.gov.uk/pubs/other/factsheet_extras.pdf

Ultimately, we should all consider if optional add-on products are genuinely useful for the client and not just a vehicle to increase revenue. I used to think to myself, would I sell this to my mother? If so, at what price?

If revenue from commission and optional extras is not enough, there is always the administration fee. But that is a whole other subject….

John Gray, Corporate Development Executive
Find out more about ARAG legal insurance products