Wholesale and Retail. Your guide to mid-market

Transcription

1 AXA Vantage / Vantage Your guide to mid-market Wholesale and Retail

2 Contents mid-market AXA Vantage our mid-market proposition...3 market insight...4 Why choose AXA for mid-market?...5 What trades are we keen to write?...6 Our enhanced mid-market proposition...7 How can our Risk Management proposition enhance the service you offer? Claims Excellence and Transparency Value Added Services...16 Your key contacts

3 AXA Vantage Our mid-market proposition Introducing AXA Vantage We understand that when you place your client s mid-market business, you need more from your insurer than just a good product at a competitive price. AXA Vantage is our exciting sector specific proposition for midmarket commercial business between 10k and 100k. Here we outline the key components of our proposition which we believe demonstrate our significant appetite and expertise in mid-market. Branch Network Trading Tools Risk Management Claims Excellence Value Added Services Every one of our 12 branches has specialist mid-market knowledge across a variety of trade sectors. We have given unprecedented levels of empowerment to our branches to make decisions locally. We welcome the opportunity to meet with your key clients to create mutually beneficial tripartite relationships. We will commit to having a meaningful dialogue with you within 48 hours of receiving your midmarket enquiry. Our branches are empowered to apply a number of trading tools including: Exclusives Net Rating Long Term Agreements Low Claims Rebates Tripartite Agreements Risk Management Fund Flexible Instalment Plans Rate Stability Agreements We help you manage your own risks by minimising your clients exposure to the risks they face working in their sector. Unlike other insurers, we don t outsource our Risk Management service. This means that our Surveyors can build strong relationships with you and ensure that we are consistent and focussed in our approach and delivery of risk assessments. AXA is ranked 1st amongst its peer group of large composite insurers for mid-market Claims service quality by Gracechurch Consulting. Mid-market brokers and clients can expect a first-class service from their dedicated Claims Relationships Manager and our trusted external partnerships. Our commitment to claims transparency ensures that customers have the best possible experience with our award-winning Claims team in the event of a claim. We ve introduced a fantastic range of value added services for you and your clients: Individual case level support will be provided to help you secure the right mid-market case. We can offer selected brokers CII accredited structured learning through seminars, training and workshops as well as mid-market events. We offer you access to digital tools and marketing consultancy delivered by Ignition, AXA s wholly-owned marketing agency. 3

4 Market Insight Almost 10% of all VAT-registered businesses in the UK are retailers with the total number currently at 192,595. The retail industry employed over 2.9 million people in 2013 and generates 5% of the Gross Domestic Product of the UK.* While more than a third of consumer spending is done in shops, retail internet sales are estimated to be growing at 10% per annum, with the total spent online standing 30 billion in 2013.* The increase in online sales is due to the move towards internetonly stores. In 2008, online and mail-order businesses accounted for 3.4% of the total number of enterprises in the retail industry. By 2012 this had increased to 8.2%. In some sectors, particularly music and film, this has had a devastating effect. Half the sales of music and film products are now online. Even fashion stores are suffering with 5-10% of sales now online.** There s also a move away from shopping in traditional high streets. Research shows that in 2000 almost half of retail spending took place on the high street, compared to 42.2% now.*** However, the outlook for the retail sector is positive, with low levels of inflation and rising wages leading to higher levels of disposable income. Consumer spending is predicted to rise at an annual rate of c % this year.**** The latest data for consumer confidence showed a notable rise in January 2015 for consumers appetite to make major purchases. Key trends Increased demand for warehousing is a key feature arising from themove from high street to online operations. Online firms typically centralise stock, which means there is a significant risk of day one business interruption if no buffer stock is held elsewhere. To be successful, retailers must put convenience at the heart of their operation, which means satisfying customer expectations of immediate service, particularly for online purchases. For reasons of economy and efficiency, retailers are increasingly outsourcing secondary distribution to third party logistics providers, making supply chain management a key element of any retailers strategy. These trends call for a seamless insurance programme to cover any supply or distribution issues. Seasonality can make some retailers vulnerable to interruption. Seasonal stock such as clothing is very hard to replace in time, should it become lost, stolen or damaged. Safety and security of business premises are an important consideration and brokers will need to assess the risks to individual businesses, dependent on location and the condition of the buildings in which they operate. High street stores in older buildings that have been expanded over time are particularly vulnerable. Electrical installations may be piecemeal and their structure could present a fire risk. Brokers need to ensure that staff training needs are addressed, particularly in smaller retail businesses where there is no specified training programme. It s essential that staff are aware of health and safety issues and procedures to follow in the event of an incident. Changes in technology affect the sector, particularly with stock control and payment. Access to professionally installed and reliable wifi is essential and protection of credit card details must be considered. Retailers dealing with cash need to be aware of the risk of theft and hold ups and ensure they have appropriate security measures in place. Finally, slips, trips and falls are the key public liability risk in this sector, particularly for retailers serving a cross section of the public, from lively children to old people with walking aids. Risks to retail and wholesale businesses vary widely, depending on type of business, business location and the use of warehousing and supply chain. Brokers need to walk business owners through the risks that they face in their circumstances and choose appropriate levels of protection. Sources: *ONS, Eurostat, Retail Economics analysis; **Consumers and the Economic Outlook: Quarterly Update - UK - October 2014 Mintel; ***BIS; **** BRC/KPMG Retail Sales Monitor 4

5 Why choose AXA for mid-market? We have proven expertise and experience in mid-market. Our aim is to provide support to you and your Wholesale and Retail customers by sharing valuable expertise and insight to achieve and maintain a successful partnership. We understand that many of your clients will have multiple geographical locations. Our in-house risk management experts can provide a coordinated and consistent Risk Management programme which is bespoke to your client s needs. We also have an award-winning Claims service. Our dedicated Relationship Management and Handling team truly understand your customers needs in the event of a claim. Why should you place place your business with AXA? Winner of Brokers Insurer of the Year 2017 at the UK Broker Awards. specific underwriting expertise and knowledge A desire to trade, with increased local empowerment to write, trade and provide tailored customer service Committed to mid-market growth and a profitable long term partnerships Valuable broker support and tailored training available Award-winning Claims service delivering award-winning initiatives Ranked the largest insurer in the world by gross written premium by global ratings agency AM Best AXA was one of the first insurers to achieve Chartered Insurer status from the Chartered Insurance Institute (CII) in 2011 Ranked in the Top 3 for mid-market Claims service quality by Gracechurch Consulting in 2014 AXA, ranked the No.1 global insurance brand by Interbrand from 2009 to

6 What trades are we keen to write? Our core mid-market product accommodates larger risks with premiums of 10k and above. We understand that a variety of different businesses could be considered under the title of retailer or wholesaler. We consider wholesalers to be businesses where the principal income generating activity is the sale of goods to commercial enterprises and retailers. This can include selling agents, brokers and merchants. We consider retailers to be those businesses selling mainly to the general public, whether or not this involves the use of a warehouse. Large retail units and Departmental/Food Stores requiring a broader spectrum of covers would also fall under our proposition. However, premises such as high street coffee shops and sandwich shops are considered to be Hospitality exposures and are therefore dealt with outside of this proposition. Some retail businesses can be catered for under a Shops Property Package policy, which can be traded electronically via our Connect Extranet. Distribution warehouses which undertake storage and/or transportation of third party goods for a fee fall outside of this proposition. Within the normal operation of wholesalers there may be an element of packaging, re-packaging or cutting or breaking down produce into smaller units involved prior to sale. This does not extend to processing of fresh food including the cutting of carcasses, filleting of fish and pasteurising and bottling of milk which would be more suited to a Manufacturing proposition. Finally, whilst generally a wholesaler sells to the trade, they may have a trade counter for direct sale to the consumer. We re very keen to write more of these trades/processes Chains of high street shops Concrete floored department stores Warehouses for storage of non-combustible goods (i.e. steel stockholding, machinery & equipment, ironmongery and ceramics) Warehouses that: are purpose built and of non-combustible construction have fully operational sprinkler systems designed to an appropriate specification for the goods stored have low piled storage (up to 4 metres) benefit from caging for items that are highly desirable Businesses that: have robust Business Continuity Planning We re interested but need more underwriting information from you Warehouses used for bulk storage of combustible goods i.e. textiles and soft furnishings, paper Garden centres Superstores/Supermarkets Cash & Carry stores Bonded warehouses Businesses that have a high frequency of workplace injury Warehouses with: heavy handling by cranes and overhead gantries/automated picking lines and conveyor/ transportation systems high piled storage use of cutting, guillotine or baling machinery Businesses that sell/distribute: own brand products goods they have imported from China and Far East We would decline these trades/processes Warehouses predominantly storing: scrap metals or other materials for recycling aerosols, explosives or flammables rubber and foam products (including tyres and foamed plastics) grains, seeds and animal feeds fertilisers Warehouses with: significant quantities of polystyrene panels high piled storage Cold Stores 6

7 Our enhanced mid-market Wholesale and Retail proposition Our priority is to understand your needs and the needs of your clients. We recognise that each client is different and so we tailor our approach accordingly. That s why we ve shaped our mid-market proposition to use our expertise to provide flexible solutions. This means that you ll get the right cover at a competitive price all serviced to a high standard. Underwriting Approach Ability to customise our offering to incorporate rate stability agreements, profit share and risk management funds. Significant capacity available to accommodate 100% placements (no need for coinsurance support but we can write on this basis if required). Clear and stable underwriting philosophy which is aligned between Underwriters and Business Resilience Managers. Policy Wording Clear and jargon-free policy wording, designed to transfer balance sheet exposure from clients to AXA. We have the ability to apply flexible limits to many extensions of cover You can choose between specified perils and all risks and have the ability to select the sections you require Flexible excesses and deductible limits. Flexibility to adapt to changing market needs (e.g. legislation and emerging risks). 7

8 Our mid-market proposition product overview Our Business Combined product is designed with your mid-market clients in mind. The information presented is not comprehensive but provides a flavour of some of the covers, limits and options available as part of our offering for mid-market clients. For further information on our Business Combined product, please contact your local AXA representative or visit axaconnect.co.uk to download a full summary of cover. Property Damage All Risks including theft Public Relations expenses cover Seasonal increase cover Exhibition cover Theft of building fabric Trace and access cover Temporary removal of contents and documents Index linking Options Day One average cover Specified perils basis available Public & Products Liability Up to 10m limit of indemnity (primary layer) Additional capacity for Excess Layer available Environmental clean up costs included Legionella included Efficacy included as standard Options Increased environmental clean up costs Part product (damage to non-defective part) First party recall costs Residual EL (where overseas operations) Vendors Liability Business Interruption All Risks including theft Denial of access Exhibition cover Essential employees cover Failure of public supplies cover (non-terminal ends) Murder, suicide or disease cover Transit cover Unspecified customers cover Unspecified suppliers cover Options Declaration link sum insured Terminal ends Increased customers & suppliers limits Specified perils basis available 8

9 Our mid-market proposition product overview Our Business Combined product is designed with your mid-market clients in mind. The information presented is not comprehensive but provides a flavour of some of the covers, limits and options available as part of our offering for mid-market clients. For further information on our Business Combined product, please contact your local AXA representative or visit axaconnect.co.uk to download a full summary of cover. Financial Loss Liability cover Contractual cover (implied terms of contract) included Liability for third party recall included Employers Liability Up to 25m limit of indemnity Wide definition of employed persons Overseas resident employee cover (UK legal actions) Money & Personal Accident Assault All Risks cover on business money Death & capital benefits Weekly total disablement Medical benefit Also available: Selected All Risks cover on specified items Goods in Transit Theft by employee Commercial Legal Expenses Cover under Freedom of Services where main risk address is based in the UK Motor Fleet Insurance a commercial motor insurance package is available for companies operating a minimum of four vehicles. It is designed to be flexible enough to meet the demands of most fleet operators. 9

10 Our mid-market proposition Management Liability As a true Management Liability specialist, our cover offers your clients comprehensive coverage significantly beyond the market standard and exclusive access to expertise to prevent and/or mitigate claims. Our comprehensive Management Liability Policy (MLP) provides any one claim sections for D&O, EPL and CLL and includes cover for: All regulatory investigations and prosecutions Fees for intervention (FFI) charges Employment claims (unfair dismissal, harassment, discrimination etc.) Defence and pursuit of contract disputes Pollution defence costs and clean up costs Employee dishonesty claims Pension claims We have teamed up with law firm rradar to offer free expert legal, regulatory and risk management advice for MLP clients. rradarlegal rradar s experienced legal experts offer support and representation in all specialist areas, giving clients the best advice when they need it the most. UK wide coverage Full legal privilege Qualified solicitors and specialist practitioners All investigation, prosecutions and defence coverage 24/7 crisis service rradargrace For legal questions on the go or in the office, rradar s voice activated legal support app rradargrace can answer an ever-expanding range of legal FAQs at the click of a button. rradarstation rradarstation: rradar s team of sector specialists and legal resource website, provides clients with bespoke legal advice via telephone or and access to online guidance pages, downloadable templates, how to guides, helpful videos and podcasts, covering all major topic areas including but not limited to: Human resources and employment Health, safety and environment Risk management Company, business and commercial rradarreport The rradarreport app enables businesses and their employees to record incidents and accidents in real time, wherever they are working. Real time data collection can make a huge difference to risk recording, management and evidential procedures under claims, potentially minimising claim damage. For further information on our Management Liability product, visit axaconnect.co.uk/mlp or contact your AXA representative. 10

11 How can our Risk Management proposition enhance the service you offer? Our Risk Management team is highly experienced in all aspects of Risk Management. What we can offer you Specialist People Specialist Service Health and Safety 50 Business Resilience experts located throughout the UK supporting single, multi-site or European location programmes. One of the most experienced loss prevention teams of any UK insurer with more than 875 combined years of experience. 12 chartered liability specialist surveyors with Level 3 food safety qualifications, 90% of the total survey team hold formal Health & Safety qualifications. 3 fully trained and qualified sprinkler engineers that are backed up with an additional 10 team members who can also undertake annual sprinkler testing. You will have the same Business Resilience Manager expert for the duration of your policy which means that we can respond quickly to any process modifications or location changes your business may encounter. Bespoke specialist services to provide high quality risk solutions, such as electrical inspection, reinstatement valuations and protection of vacant buildings. We offer advice on areas such as fire, business interruption, weather, security, motor and liability risks. Our 15 in-house motor fleet specialists make things easy for you by delivering standalone or combined surveys. Clients can access a multitude of online assessments and training courses as well as a legal helpline where all advice is provided under privilege. The sector continues to face challenges relating to injury and lost time. Manual handling, hazardous goods plus the common slips, trips and falls within the premises or at other premises all contribute to the problem. Our Risk Management team has the expertise to support your clients and reduce the impact on injury and lost time. 11

12 Risk Management in action In 2013, we agreed to undertake a survey programme for 24 stores across the UK for a major retail business. The flexibility and mobility of the Risk Management team was demonstrated by the fact that stores were located in Staffordshire, Leicestershire, Rutland, Northamptonshire, West Midlands, Derbyshire and Warwickshire. Survey locations were proportionately split between convenience stores (11), larger supermarket locations (11) and superstores (2). We devised a bespoke report for the client covering specific areas of interest including how well their new accident packs were being used and whether management daily store checks were being carried out correctly. The survey programme was completed by two experienced AXA Risk Control Surveyors under the supervision of the local AXA Regional Survey Manager as key overseer of the work. Following an initial familiarisation visit with all key personnel to set the scene, 24 surveys were completed in seven weeks. The information gathered was then analysed and presented back to the client in late 2013, alongside risk improvements which were warmly received and very much appreciated by both the broker and the client. 12

13 Claims Excellence and Transparency Our award-winning Claims service Our dedicated Claims Relationship Management team truly understand your clients needs in the event of a claim. This is the service you can expect from AXA if one of your clients needs to make a claim: Services We give you 24hr/365 days a year access to claims assistance with an easy and flexible notification process. You will have access to our trusted external (local and international) partnerships including solicitors, loss adjusters and mediation specialists. By teaming up with Feefo, your customers can publicly post their rating and comments online about the service and experience they received from AXA when making a claim. Making Claims Clear is our award-winning transparency initiative. We ve developed a library of documents to help your customers understand what is and isn t covered by our policies. People We have an award-winning Large Loss team as well as dedicated Claims Handlers who deal with specialist Wholesale and Retail schemes. Your dedicated Claims Relationship Manager will ensure the smooth-running of the account. Universally accredited fraud technical experts with recognised qualifications within the insurance and anti-fraud industries. We have a nationwide network of 36 AXA Claims Inspectors handling 90% of all liability injury claims investigations. Our Inspectors have, on average, 23 years of insurance or legal experience. Tools We ll supply you with bespoke monthly claims MI, enabling us to analyse performance and trends around an individual client s claims portfolio. eserve, our online Claims tracking tool, allows you to see how your customer s claim is going, as it s going. Faster payments pays within 2 hours when a settlement is made directly to our policyholders bank account to reduce inconvenience and enhance customer service. In 2016, we dealt with 1,500 high value complex claims with a combined value of 850m. 80% of claims handling staff have a CII professional qualification. Over 1,200 brokers have access to our eserve portal. In 2016, we settled 19% of property claims within 24 hours under our One & Done process. AXA staff who are handling large loss claims have an average of 22 years of insurance experience. Over 130,000 payments have been processed using Faster Payments Insurance Times Awards Claims Initiative of the Year 2015 CII Public Interest Awards Best Campaign in the Public Interest (Marketing or Advertising) category Claims Transparency 2015 British Insurance Awards Insurer Claims Initiative of the Year 2015 National Agile Awards Best Agile Team, eserve Claims team 13

14 Claims case study 1: Wholesale A fork lift truck at a wholesaler of printer s ink collided with racking in their warehouse causing a major section to collapse with extensive damage to the racking and the ink estimated at over 200,000. Our Loss Adjuster was on site the same afternoon to discuss what initial measures were needed and to guide the client through the process. The Adjuster quickly agreed to the appointment of a specialist engineer to assess the extent of the damage and to supervise the removal of debris and to minimise secondary damage. Specialist cleaning techniques had to be employed to remove ink residue from the warehouse and yard. Early interim payments were made to assist with the Insured s cash flow. Our Accountant worked with the Insured to quantify the extent of the stock loss. There was a lead time for the replacement of damaged stock and we therefore worked with the Insured to agree the salvage and repotting of as much ink as possible. This greatly reduced the impact on the Insured s business. The claim was quickly concluded and the Insured sincerely thanked us for the way we had supported them throughout the whole claims process. 14

15 Claims case study 2: Liability A customer entered one of the Insured s convenience stores in the early morning to purchase two bottles of wine. Whilst walking down one of the stores aisles, she fell and suffered bruising to her hip and upper leg. The Insured s staff immediately went to her aid, helping her up and sitting her in a chair before administering first aid. She immediately said that she had fallen over something on the floor but declined medical treatment. The Insured s staff pointed out at the time that there was nothing on the floor. This conversation was witnessed by two other members of staff. Two months after the accident, the claimant instructed solicitors to pursue a personal injury claim alleging she had tripped over a plastic strip on the floor. The claim was submitted through the Ministry of Justice portal. The claimant alleged that, in addition to the injuries to her hip and leg, she was suffering from nightmares. The claim was estimated to be in the region of 14,000. Investigations were carried out by an AXA Claims Inspector who visited the shop. Witness statements were obtained from the Insured s staff along with all relevant accident related documentation. Following our investigations, liability was denied on the basis that there was no evidence anything had been left on the floor to cause the claimant to trip or slip. Following our denial of liability, the claim was subsequently dropped. 15

16 Value Added Services We ve introduced a host of additional services for brokers who are actively committed to working with us to grow our mid-market book of business. It s not just brokers who benefit; clients will also have access to a range of valuable services. Business Interruption Calculator Designed to simplify a BI sum insured/limit of indemnity periods. Can be used by the broker or the client/accountant. Broker value added services support for the right risk Extensive support will be made available to all brokers to secure the right Wholesale and Retail mid-market case: AXA risk control/broker pre-quote on-site customer review Proven to increase conversion through better pricing Excellent client feedback on adding value to their existing risk management programme No surprises as we identify any risk prior to cover. Client value added services support for the right risk Building Valuation Service removes average and the risk of underinsurance Unoccupied buildings/vps specialist protection services which can widen cover available and reduce ongoing third party security costs (average security guard costs 1,500 per week). AXA has an exclusive agreement with VPS meaning clients can protect vacant buildings from as little as 89 per week. The minimum contract period is 1 week whereas standard practice is a minimum of 8 weeks LeakSafe Solutions keeps premiums down by reducing claims frequency and severity from escape from water British Gas Electrical Inspections for both legal compliance and protecting employee and property which can include free of charge thermographic assessment for larger and more complex risks. Riskhelp designed to assist UK businesses to gain a better understanding of their legal responsibilities, common business hazards as well standard market business insurance policy wordings. 16

17 Value Added Services Grow your people (CII accredited structured learning) Supporting mid-market brokers will have access to a range of additional benefits designed to develop your people: Mid-market specific technical, risk management and claims training plus regular market briefings Local team skills training on topics such as price negotiation, customer segmentation and contact planning Access to leadership training events such as our popular leadership seminars in Bordeaux, Paris and the UK Funding support for CII Regional Broker Academy workshops (with top up funding if also Chartered) Invitations to mid-market specific broker events and seminars with access to the Senior AXA Leadership team. Grow your business (Delivered by Ignition NBS Ltd.) Supporting mid-market brokers will have access to a range of additional benefits designed to develop your business: Subsidised access to new AXA digital tools such as the awardwinning endcustomer.co.uk, which provides brokers with real time desktop access to a range of client data sets to help you profile and win customers Access to data and profiling services to help validate and enrich your local mid-market pipeline and undertake joint prospecting Marketing consultancy and execution across the complete range of marketing services, including; lead generation, training, web and social media design and build, video production, creative design services such as brand or campaigns/print solutions and access to the Ignition CRM bulk campaign tool AXA specific marketing campaigns. AXA Vantage app We ve developed a new mobile app which offers you personalised news and knowledge at your fingertips. The AXA Vantage app is available to download via the App Store for free. The Vantage app offers you multiple benefits, including: Rolling news from a range of UK industry sectors including A My news section to personalise your experience and only see the industry news that interests you The latest insurance trade news Keep up to date with the latest AXA Vantage developments Refreshed content every 15 minutes, so you ll never miss the latest stories Users can share articles by , Facebook and Twitter Favourite interesting articles to read at a time that suits you. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries. Download the app today via the App Store. Search AXA Vantage 17

18 Your key contacts Our branches want to talk to you about AXA Vantage. To discuss specific mid-market Wholesale and Retail opportunities, please contact your local branch specialist. Scotland Branch John McCormick Leeds Branch Steve Cragg National Trading Centre Bolton Andrew Chamberlain Manchester Branch Louise Gosling Birmingham Branch Jo Walker Bristol & Cardiff Branches Graham Ashmore Newcastle Branch Sian Mullane Ipswich Branch Toby Points Reading Branch David Harrison Maidstone Branch Stuart Daffin London Branch Tim Sumner

19 AXA Vantage AXA Insurance UK plc Registered in England and Wales No Registered Office: 5 Old Broad Street, London EC2N 1AD. A member of the AXA Group of companies. AXA Insurance UK plc is authorised by the Prudential Regulation Authority and regulated by the FinancialConduct Authority and the Prudential Regulation Authority. FCA number Telephone calls may be monitored and recorded.