NEWS
EXPRESS
January 2023
Click on any of the below to see what’s new inside or just keep scrolling...
CE Update
Schemes Overview
Scheme Updates
Targeted Trades
Technical Insight Underinsurance
Feedback Survey - Win £50
CE Learning
Welcome back Ian Barnett
The Regulatory Horizon
Careers
Charity
Sponsored by Ed Broking
Discover the CE Help Hub
Your first-class step-by-step guides on topics relating to our System, Trading with CE and Service.
Click here to discover the Help Hub
System
Trading with CE
Service
CE Update
Welcome to the first edition of the Express Newsletter for this year, and what we hope will be a prosperous one for us all. Looking forward into the 2023 horizon, Commercial Express will be sharing some exciting updates with you, from scheme enhancements, multiple product launches, system updates and revitalised services for our brokers.
In 2022 we expanded our product offering with the addition of six brand-new schemes, and in 2023 we aim to release a new scheme every two months, meaning six further additions to our current portfolio of 40 schemes in our range. Giving our brokers a really wide and varied offering of superior and competitive schemes. We also aim to provide a number of scheme enhancements in order to ensure that we are offering the best products we can to our brokers.
In addition to this, we like to work closely with brokers to develop business opportunities such as bespoke rates or schemes that offer a solution for our broker partners and what their customers need. This can be in various forms from an exclusive rate for a specific broker for a rollover book of business, or indeed the creation of a new product. We have a wide range of placement partners and insurers that we work with to develop these opportunities based on the individual placement strategy of the broker.
We are always looking at ways in which we can make enhancements, so we actively encourage monitoring all services and looking at ways we can continuously improve. We want to deliver a customer-first strategy by putting our brokers at the heart of what we do. Over the last year, we have made significant positive changes to our system, website, and our free-to-brokers online learning platform to ensure the customer journey is seamless. We have been making changes to question sets to allow the digital journey to be smoother and quicker, whilst ensuring our Underwriting Service Team is strengthened and given continuous training so they have deepened commercial knowledge. Everything we are developing is with the aim of making a positive difference to our brokers. We have invested significantly in our online trading platform and we continue to do so in order to improve the customer experience.
The most important and valuable asset to Commercial Express is people. We value our fantastic brokers and our incredible staff, without them, we wouldn’t have a business. So with that, we not only strive to protect and care about those people but make every day just that little bit better – with the aim of always adding value.
Duncan Pritchard
Managing Director
Schemes Overview
Contract Cleaners
- All Contract Cleaners trades will now have an increased height limit of 10m except for window cleaners (Reach Pole only).
- We have introduced the new trade Window Cleaners (Reach Pole Only) which is 10% cheaper than the existing window cleaner trade.
- Non-cleaning trades, such as garden maintenance can be included as business activities under our contract cleaners (subject to the main trade being cleaning).
- The Business Equipment Warranty was amended to reduce the necessity to document a weekly inspection to confirm there are no signs of damage and/or any wear and tear that would render any height equipment unsafe.
Land Liability
- The watercourse condition will no longer apply if there is no public footpath and/or rights of way situated on the land.
Liability Per Cap
- 20m height limits will quote without referral on all 3 schemes (previously only via Covéa). A 20% premium load will apply to the EL section only.
- £1,500 Tools and Stock can now be included at no additional charge on both our Ascot & Covéa schemes.
- There have been significant rate reductions on the tools and stock cover on our Ascot scheme. Rates have been reduced by nearly 50%.
Liability Wages & Turnover
- 20m height limits will quote without referral on all 3 schemes (previously only via Covéa)
Market Traders & Online Retailers
- The maximum limit of stock cover available has increased from £5,000 to £10,000.
Residential Property Owners
- CE is now authorised to write properties valued up to £4,000,000 on our Let Secure scheme.
- AD cover is now available without a referral for DSS Referral & Asylum Seeker tenanted properties via our Let Assured product.
Commercial Property Owners
- CE is now authorised to write properties valued up to £4,000,000 on our CPO Covéa scheme.
- Increased lists of Restaurants & Takeaways including the introduction of the trade Café – The question set is improved so you must select the closest matching trade (which will carry more competitive rates than the generic restaurant or takeaway trade).
Office & Office MD
- Substantial rate reductions on our Office and Office MD schemes.
- Reduced thresholds for the contents size discounts and improved the discount amount for offices.
Survey Requirements
CE has increased their thresholds for the necessity of having a survey on multiple schemes and even removed the requirement on all our residential property owner schemes. Please see the below table that outlines the new thresholds:
Gross Written Premium | ||
Scheme | Old | New |
All SME/Package | £3,500 + IPT | £5,000 + IPT |
CPO HCC | £3,000 + IPT | £4,500 + IPT |
UPO SCOR | £3,000 + IPT | £4,500 + IPT |
IPO Ascot | £3,000 + IPT | £5,000 + IPT |
Scheme Updates
Residential Property Owners - Let Secure
We are delighted to announce the launch of the Residential Property Owners product – Let Secure, underwritten by Covéa. This scheme boasts our most superior, enhanced and extensive policy coverage, and strong appetite for Professional, Students and DSS Non- Referrals tenants.
Plus the new Let Secure scheme is a more premium offering that can target properties of up to a £4m BSI.
Covéa brings brand reputation to the new scheme, along with the strong underwriting appetite for Residential Property Owners businesses.
Not available in Northern Ireland.
Great policy coverage as shown below
Some of the enhanced features include;
- Trace & access - £10,000
- Loss of metered water - £5,000
- Temporary removal of contents – 10% of the Contents Sum Insured
- Theft by tenants - £5,000
- Cover for contents in outbuildings/garages - £1,000 and garden machinery - £750
- Damage for forced access to the property (in a medical emergency etc - £25,000
- Costs for clearing/removing illegally deposited property - £750
Commercial Property Owners - BRIT
BRIT have a widely recognised industry reputation backed by A rated capacity and we are delighted to welcome them to the panel as they offer a strong appetite and superior policy coverage to the range. They are a market-leading global speciality insurer and reinsurer, focusing on underwriting excellence in complex risks and enhanced features that significantly benefit the Commercial Express offering.
This new Commercial Property Owners scheme underwritten by BRIT brings a broader appetite to write risks for the following Commercial Property types:
- Restaurants (with the exception of Chinese and Indian restaurants)
- Offices and associated trades
- General Retail Premises
Great policy coverage as shown below
- Alternative Accommodation - 25% of the Total Sum Insured
- Trace & Access - Up to £250,000
- Malicious damage – Up to the sum insured
- Illegal Cultivation of Drugs Cover - Up to £25,000
- Replacement Locks Cover - Up to £25,000
- Property Owners’ Liability - Up to £2,000,000 LOI
PL Excess of Loss
Introducing our new scheme PL Excess of Loss with capacity provided by Ascot Syndicate 1414 at Lloyds. Your clients can benefit from this new Public Liability Excess of Loss scheme, which is a top-up liability cover designed for a broad spectrum of small, medium, and large businesses across a variety of trades and industries.
Excess of Loss insurance provides a business with the additional cover above its primary liability policy. When the primary insurer may not be able to provide the limit of indemnity required, Commercial Express can top-up its cover to ensure the policyholder gets the cover and protection they need.
PL Excess of Loss Offers THREE levels of cover;
- £4,000,000 in excess of £1,000,000
- £3,000,000 in excess of £2,000,000
- £5,000,000 in excess of £5,000,000
- Cover for up to 300 trades
- Low minimum premiums start at £200
- There is no requirement to see a copy of the policy wordings from primary insurers
- The Primary Layer insurer must be UK regulated with a financial rating as defined by either
- S & P or AM Best of ‘A’ or above and/or a Lloyd’s syndicate
- Turnover limited to £15m
- Product cover includes heat trades
Significantly Improved Market Traders & Online Retailers Scheme
Commercial Express are excited to announce that we have made some significant improvements to our Market Traders scheme. We have expanded the product to cater for Online home and commercial traders and changed the name to Market Traders & Online Retailers scheme.
Improvements and changes to the scheme
- The scheme is now tailored to accommodate small online retailers
- Up to £500 Loss of money cover included for FREE. With the option to increase up to £5,000
- Up to £500 Loss of stock cover included for FREE. With the option to increase up to £5,000
- The option to cover up to £10,000 in business equipment
- Turnover restriction increased to £100,000 (previously £50,000)
- No limit to the number of employees
Exclusive Liability (Per Capita) scheme to include Contract All Risks Package extension
We are happy to share the news of our Liability (Per Capita) product underwritten by A-rated Tokio Marine HCC and exclusive to Commercial Express.
The facility is unique to the UK liability market, in that it is one of a limited number of Per Capita schemes that offer a CAR extension. The CAR package extension includes Contract Works, Owned Plant, Hired in Plant and Employees Tools and Effects. There are 6 differing CAR packages to choose from.
CAR package cover is not available in isolation and Northern Ireland risks are subject to a 30% load.
Another fantastic feature of this facility is the majority of trades also benefit from a Nil Third Party Property Damage excess. Contracting trades are subject to £100 excess in the main.
Targeted Trades
For each publication of the Express News we will be profiling a niche trade in which we provide first-class coverage – this edition we are bringing you Touring Caravan & Motorhome Maintenance Repair.
Touring Caravan & Motorhome Maintenance Repair
Our Per Capita facility underwritten by Ascot can accommodate motor garages/motor mechanics specialising in the maintenance and repair of touring caravans and motorhomes.
In the main, this is looking after the habitation side of the vehicles which is lower risk, but there could be some element of mechanical work in respect of the motorhomes and also brakes and towing equipment on the caravans.
There are several features that we wish to highlight that forms part of the standard offering.
The first is around the High Value Vehicle Exclusion we apply as standard to all motor trade activities. This is to prevent the mechanics from working on high-performance vehicles and more sport-type models etc. We reviewed this exclusion in relation to motorhomes and touring caravans and increased the vehicle value limit to £100K and also removed the inner damage limit of £50K – we felt this change was more in line with the activities and exposures for this trade. Clause wording is as follows:
High-Value Vehicle Exclusion
Underwriters shall have no liability under this Policy to provide any indemnity or benefit for any legal liability directly or indirectly resulting from or in consequence of loss or damage to vehicles with a market value in excess of £100,000.
The other improvement in the facility is in respect of the Service Indemnity Extension. At present, we limit this extension to £250,000, but for this trade, activity has increased the options of cover - £500,000 will be included as standard (if service indemnity is selected) with options of £1,000,000 and £2,000,000 on referral. Clause wording below:
Service Indemnity Condition
Subject to all other policy terms and conditions Section B of this Policy extends to include legal Liability arising from:
Maximum limit of indemnity £[As selected] any one occurrence and in the aggregate
a) the repair servicing or maintenance of any vehicle
b) the examination of any vehicle in accordance with the Motor Vehicles Test regulations
c) the Sale or supply of new or manufacturers' reconditioned spare parts components units accessories or other goods for vehicles.
d) Any work carried out on new or used vehicles prior to sale or supply including pre-delivery check of new vehicles as required by the manufacturer and the fitting of additional accessories to such new or used vehicles.
Exclusions (all applicable regardless of cover date)
This section does not apply to or include legal liability arising:
- out of loss or damage to motor vehicles held in trust by or in custody or control of the Insured their employees or any party who is carrying out work on behalf of the Insured resulting from fire explosion theft or attempted theft malicious or accidental damage.
- out of compensation which arises solely by virtue of an express guarantee warranty condition or indemnity given or accepted by the Insured unless liability would have attached notwithstanding such guarantee warranty condition or indemnity.
- out of the supply of tyres other than new tyres processed by a recognised manufacturer.
- out of the fitting and/or balancing of tyres to or on vehicles.
- out of the process of cleaning or use of chemicals used other than in accordance with the manufacturer(s) recommendations as to use.
- out of loss or Damage occasioned by any malicious act caused by or in any way brought about by the Insured or any Employee.
- out of Damage to or the repair or reinstatement of any vehicle sold or supplied by the Insured unless caused directly by any work carried out by the Insured on such vehicle.
- out of Damage to or the repair or reinstatement of any spare parts components units accessories or other goods sold or supplied by the Insured or which were the subject of the repair servicing or maintenance giving rise to the liability of the Insured.
- out of any claim in connection with the sale or supply of any goods to any purchaser carrying on the business of selling or supplying such goods.
- out of death injury loss or Damage caused directly by the driving of any motor vehicle.
- out of wrongful advice given by the insured for a fee or in circumstances where a fee would normally be charged.
- in connection with the servicing or sale of goods which are intended for use in the United States of America or Canada.
- from the failure of any product Supplied to perform its intended function.
Technical Insight – Underinsurance
As part of the first newsletter of the year, I felt it appropriate to share some thoughts and concerns over a problem that has been discussed quite a bit over the last 6 months, that of underinsurance, inflation and the value of insurance products.
At Commercial Express, property owners insurance is our largest product line and we write thousands of policies every year. There seems to be a growing trend of claims where, whilst the indemnity of the claim is not in question, the buildings seem to be drastically underinsured. It is common for average to then apply as often the buildings are underinsured by 40% or 50%. Whilst the mechanics of this are all legitimate it can't help but seem to the end client to be quite unfair and it doesn't seem a good look for the industry as a whole.
I'm not sure that relying on index linking, day one or other indexation methods embedded within a policy wording is solely the answer. We have recently more than doubled our index linking percentage to try and keep in line with current inflation and help protect our policyholders, however even had index linking at the new percentage applied to some of these policies over the past few years, unfortunately, the building sum insured would still be quite adrift from current valuations.
I can appreciate the difficulty for the customer at this time with the pressure on costs and bills, to undertake a revaluation that might be the first time in five years and to have the building sum insured potentially double and thus most likely the insurance premium increase. However we can't avoid this fact, and I think it is better to be clear and upfront and try to explain the issues with underinsurance rather than hope that the issue will go away and a claim not occur.
It is difficult for you, the broker, as well, to try and convince the customer around the merits of having up-to-date and accurate sums insured. Often if a claim started to go badly then the broker can often be in the firing line. The best thing we can do is to try and work together in making sure that our communication around this subject is clear, efficient and with the long-term goal of giving the best service to the customer.
I would be interested to hear your thoughts on this matter and anything further Commercial Express could do to help. Certainly, it is a topic that we all need to keep a close eye on over the coming year.
Written by Tom Bolstridge Head of Underwriting
Feedback Survey
At Commercial Express we truly value your opinion and aim to make improvements to our system and services based on your feedback. Please take part in our feedback survey for your chance to win £50 Amazon voucher.
In the last 6 months we have released various CE Learning modules you might have missed. For quick access please click on any of the courses below to start your learning....
Latest Courses
Optional Extras from ARAG
It provides an outline of how Essential Business Legal Expenses, Landlord’s Emergency Assistance & Landlord's Legal Expenses work. It also looks at the insured events that are covered and what these products will pay for.
Public Liability (PL) Excess of Loss
This course introduces the new Public Liability (PL) Excess of Loss scheme from Commerical Express. One of the key aims of the scheme is to provide policyholders with low cost and quick Excess of Loss top-up cover to simplify the complications that can sometimes arise when arranging multiple policies and layered insurance.
FCA Regulations: Complaint Handling
This course explains the regulator’s requirements for complaint handling and outlines who is eligible to make a complaint. Good Customer Outcomes are core to the FCA’s aim, but it does not mean that all complaints should be upheld. The course also outlines how company complaints procedures should work and how complaints are monitored and used to improve company performance.
Commercial Property Insurance Claims - Validation and Investigation
This course explains the validation of commercial property claims, the different ways in which they can be investigated and the importance of claims reserving. It also outlines the remedies available under the Insurance Act 2015 for breaches of disclosure or warranty, the key indicators of potential fraud claims and examines the principle of proximate cause and how it applies to commercial property claims.
Sprinkler Systems & Sprinkler Leakage Insurance - Module 2
In Module 2 (It is assumed that you have completed Module 1 already), we move on to the design and installation of sprinkler systems and their insurance implications. The course also outlines sprinkler maintenance requirements and explains the usual cover and exclusions of sprinkler leakage insurance policies.
Terrorism Insurance
This course provides a brief history of terrorism insurance in the UK and the setting up of the government backed scheme, Pool Re. It explains how terrorism cover and Pool Re currently operate and also looks at how terrorism cover is provided outside the Pool Re arrangements. This course is definitely beneficial for anyone involved in property led insurance.
Theft and Money Insurance
This course defines ‘theft’ and describes the different ways it can occur. It also examines the main underwriting considerations of a theft risk and the types of physical and alarm security protection available. This course is definitely beneficial for anyone who has recently started their insurance career or anyone seeking to refresh their understanding in this area.
Weather Risks
This course details the cover afforded by insurance policies in the UK against weather related risks, explaining how weather extremes around the world can affect the UK insurance market. It also outlines the concerns of the insurance market in respect of how global warming might affect the industry. This course is beneficial for anyone involved in the provision of insurance against risks affected by the weather and who already has a good level of insurance knowledge.
Welcome back Ian Barnett
Welcome Back Ian!
Commercial Express are delighted to announce the return of our fantastic Key Account Manager Ian Barnett.
He will be assuming the role of KAM for the North East, North West and Scotland, picking up many of the accounts that he previously managed.
This exciting return demonstrates the commitment that Commercial Express have in building a strong team of experienced individuals, with the desire to achieve growth for the business and huge opportunities for our broker partners.
The Regulatory Horizon
The Consumer Duty
Background
Further to their consultation paper CP21/36, the FCA are moving forward to introduce a new Consumer Duty (‘the Duty’), that will set higher expectations for the standard of care that firms provide to consumers. The concept of a Consumer Duty has been on the horizon for a number of years, following concerns of consumer harm within the market and that existing FCA rules for Treating Customer Fairly were not having the desired impact.
Despite many firms adopting good practices when it comes to customer outcomes, there is still evidence of harm, and therefore a need for change.Examples of poor practices include firms presenting information that is misleading or difficult to understand, unsuitable products or services being sold, and poor levels of customer service and support.
In order to achieve good outcomes, Firms need to understand their customers’ needs and have the flexibility to support them. It is important that customers can make informed and effective decisions, and that products or services are providing fair value.
What's changing
The Duty will set higher standards for Firms to adhere to and there is a clear shift in the focus from achieving ‘Fair’ outcomes or treatment, to ‘Good’ outcomes. As a result of this, a new Principle will be introduced: Principle 12 – A firm must act to deliver good outcomes for all retail customers. In addition, from a SM&CR perspective a new Conduct Rule will also be introduced: Rule 6 - You must act to deliver good outcomes for retail customers.
The Duty sets a higher standard than the current Customer Principle, which requires firms to treat customers fairly. Therefore, it was deemed appropriate to use different language – ‘good’ rather than ‘fair’ – to acknowledge that this is a different, higher standard, and it is this higher standard that firms will be judged against.Firms will be expected to adopt a culture where they consider whether something is the ‘right thing to do’ rather than whether something is ‘within regulations’. In determining whether good outcomes are being achieved for consumers, a question that firms can ask themselves is whether they are applying the same standards and capabilities to delivering good consumer outcomes as they are to generating sales and revenue.
Improved Outcomes
There are four outcomes the FCA want to see under the Duty which are instrumental in helping to drive good outcomes for customers. These outcomes relate to:
- products and services: that are fit for purpose, distributed appropriately and are designed to meet the needs, characteristics and objectives the target market
- price and value: to ensure there is a reasonable relationship between the price paid for a product or service and the overall benefit a consumer receives from it (Fair Value)
- consumer understanding: communications that support and enable consumers to make informed and effective decisions
- consumer support: service that enables consumers to realise the benefits of the products and services they buy and ensures they are supported when they want to pursue their financial objectives.
The outcomes are further supported by Cross-Cutting Rules that require firms to:
- act in good faith
- avoid causing foreseeable harm
- enable and support retail customers to pursue their financial objectives
Under the Duty, firms will need to assess and evidence the extent to which and how they are acting to deliver good outcomes and can expect to be asked by the FCA to demonstrate how their business model, the actions they have taken, and their culture are focused on delivering good customer outcomes at any point. This maybe the firm's annual report or other MI as appropriate.
Scope
The Consumer Duty applies to Retail Customers which has caused some complexity. The FCA has clarified in the Final Rules and Guidance that it is taking the approach of applying the Duty in line with the existing sourcebooks, therefore where SME’s are currently protected by the provisions of a sourcebook the Duty will also apply. In terms of the Consumer Duty rules specifically,the definition of a Retail Customer defines both a Consumer, and in respect of where the Principles for Businesses Sourcebook (PRIN) applies in relation to ICOBs activity, the definition is a policyholder or prospective policyholder.
Timing and Implementation
The rules come into force on a phased basis:
- For new and existing products or services that are open to sale or renewal the rules come into force on 31 July 2023
- For closed products or services the rules come into force on 31 July 2024
- By the end of October 2022, firms should have agreed implementation plans
- By the end of April 2023 Manufacturers need to have completed their reviews against the four outcomes, identified where changes need to be made, and shared key information with distributors to enable all firms to comply in time.
Further Information
Further information and the full policy statement can be found on the FCA’s website
https://www.fca.org.uk/firms/consumer-duty-information-firms
https://www.fca.org.uk/firms/consumer-duty
Careers at CE
At Commercial Express we pride ourselves in our people, we are a dedicated company that offers great employment opportunities and employ great people.
We provide our employees with:
- A culture of inclusion, where everyone feels valued and important
- An open environment for ideas to flourish
- Opportunities for career development, growth and promotion
We recognise that our people are our greatest asset and we have a talented and dedicated team of individuals who work together to achieve Commercial Express’ goals.
Take a look at our careers page for the very latest vacancies and upload your CV to the portal. You can read more about life at Commercial Express and see what some of our colleagues have to say about their working life https://www.commercialexpress.co.uk/careers
Want
We
You!
Join Our MGA Team
Charity
Charity Partner Birmingham Adult Transplant Sport Team
Commercial Express are proudly sponsoring the Birmingham Adult Transplant Sport Team as our Charity Partner for a five year term.
This is a fantastic team of people made up of recipients of organ, stem cell or bone marrow transplants. Members range in age from 18 to over 80, all of whom have used sport to help their recovery after their transplants. Some of the members have even donated organs themselves.
Each year, the team participated in the British Transplant Games. For many, being at the games is a victory in itself. There are a whole range of events to participate in, with different levels of intensity of activity. Whilst participants are encouraged to compete with one another, the games are a perfect opportunity to enjoy being with friends, have fun and enjoy life.
The Birmingham Adult Transplant Sport Team has had a lot of success over the years, with some members even going on to represent Great Britain & Northern Ireland in the World and European Transplant Games.
We’ll be following this great team along their journey and keeping track of their progress on our social media channels LinkedIn, Facebook, Twitter and Instagram.
Wishing the Birmingham Adult Transplant Sport Team huge success with your upcoming events this year!
If you would like to make a donation to this remarkable team you can do so here
