1. IAM RoadSmart and Cornmarket
Ballymena Meeting
13th November, 2018
IAM Surety
Insurance Scheme
GROUP SESSIONS

2. Benefits - Our pillar of success
Agenda
IAM Surety – who are we ?
Benefits - Our pillar of success
Getting a good quote
The UK Car Market
Why be your own broker?

3. Who are we? Cornmarket Insurance Services 100% Affinity Broker
47+ years’ experience working SOLELY with group organisations
Car insurance specialist
400 employees. 80 in Belfast, serving the UK.
Owned by Great-West LifeCo.
Award winning customer service
Broker model – choice
IAM RoadSmart is Cornmarket’s largest scheme

4. Who are we? – Insurer Partners

5. Who are we? – New propositions launched in last 12 months
3rd Price matching Underwriter – Car (Only the second Broker in the UK to have an RSA Car agency)
Telematics Product
New Specialist Car insurers
2 new Bike underwriters Multi Bike proposition
Classic Bikes / Cars
2 new GAP products
New Travel Insurance product
More to come !

6. Car Policies Bike Policies Home Policies Total Policies 29,511
IAM Surety in numbers
Car Policies
18,400
Bike Policies
4,737
Home Policies
6,610
Choice – SAGA may be cheaper but not on all cases. We offer choice.
We always offer cheapest available – others don’t rebroke.
IAM members are demanding – whilst we do get complaints, 99% are about price / price matching: our best asset can often become our biggest challenge e.g. why cant we offer the bets price first time.
Total Policies
29,511

7. Benefits with IAM Surety
Partnership approach - bespoke deals in one of the most competitive markets in the world
Choice!
Price Beat - Unique!*
Market leading conversion and retention levels 50%+ / 80%+ retention levels
Bespoke covers and benefits – Dash-cam
Consistent flow of testimonials
Fairness approach – all partner insurers seek same renewal uplift. NOT penalising AGE.
Choice – SAGA may be cheaper but not on all cases. We offer choice.
We always offer cheapest available – others don’t rebroke.
IAM members are demanding – whilst we do get complaints, 99% are about price / price matching: our best asset can often become our biggest challenge e.g why cant we offer the bets price first time.

8. Testimonials – The Personal Touch

9. Testimonials – The Personal Touch

10. Product Benefits Car and Bike
Free as standard: Courtesy car, extended European cover, windscreen cover (car), key cover (car).
Cover blue light cover (Car – RSA)
Blood runners (Bike – Ageas)
Cover IAM driver/rider skills days – standard restriction on most motor insurance policies
Increased benefits for Fellows (for car)  – no upper age limit for criteria and free legal and breakdown cover
Home
Completely bespoke product with RSA

11. Our pillars of success
We give advice!
We make it personal!

12. Our expertise? We offer advice and personal recommendations
Advice - Not available on line. Most brokers don’t offer.
Regulation has made it much more difficult for Brokers but we insist on offering advice on car and home
Do you want to be your own Broker ?

13. Our pillars of success
Works both ways!

14. Getting a good quote
Overall, the performance of the IAM account dictates price.
IAM test will always be recognised but years since past test has a major impact.
Claims / convictions / penalty points of member and named drivers.
Bikes – high mileage and postcode is a major factor (London postcode loss ratio was > 4 x times that of the rest of the book but premiums were only marginally higher).
Commercial use of vehicle – this is Personal Insurance Scheme.

15. Getting a good quote
Sometimes, customers will simply want to remain with their current provider !
We are constantly working to ensure they see ADDED BENEFIT in coming to IAM SURETY!

16. Average Car premiums
IAM Surety average car premium - £ ( 36% lower than the UK average premium)

17. Getting a good quote – claims
Typical % of Fault / Non Fault claims = 50 / 50
IAM members perform how much better?
47.5% Fault / 52.5% Non Fault

18. Are IAM members better drivers in terms of claims ?
All Customers
Typical % of Fault / Non Fault claims = 50 / 50
Frequency UK – 10.2%
Frequency IAM – 12.2%
>70s
Typical % of Fault / Non Fault claims = 50 / 50
Frequency UK – 8.2%
Frequency IAM – 11.2%
IAM members’ claims frequency is 20% higher than a general group of customers
IAM members’ claims frequency is 36.5% higher than a general group of customers same age

19. Are IAM members better riders in terms of claims ?
IAM Bike claims explained:
Driven by higher mileage and high proportion of riders in higher rated areas where frequency is always higher.
It’s not the volume of claims that is hurting the account, but rather the cost of those claims.
The average IAM claim cost is virtually double that of a standard account. This is in part because of the types of bikes that are being insured on the IAM scheme, (newer, higher value bikes)
If we just look at higher rated areas in isolation:
IAM Claims frequency = 3.0%
UK Bike Claims frequency = 2.5%
Bikes also tend to be newer and are therefore more attractive to thieves.
All UK Bikers
Frequency UK – 1.6%
Frequency IAM – 1.9%
IAM riders’ claims frequency is 18.7% higher than a general group of customers

20. Main types of Fault incidents
669 fault claims
16% Hit Third Party in rear
9% Thefts
14% hit immovable object
10% pulled out into Third Party

21. UK Insurance Market – Profit making?
£269 million profit in 2017 only the third time the industry had made an underwriting profit since 1994.
Challenges - Insurers are now paying out over £12 million a day on repair costs alone, on top of the £9 million for bodily injury claims.
Fraud – Costing EVERY policyholder at least £50 p.a.
Repair costs
Theft costs have doubled since 2013
Fire - Liverpool Echo Arena Car Park. 1,000 vehicles lost. £20m+ pay-out.
Q and A