Product Governance & Value Assessment

Our approach to measuring fair value is reviewed every twelve months.

In accordance with PROD 4.5.7, we have undertaken an assessment of value in respect of the products being offered as part of a distribution chain.

In respect of the products we distribute, we have put in place adequate arrangements to understand:

1) The characteristics of each insurance product; and

2) The identified target market of each insurance product.

We have carried out a PROD assessment on each available product, which includes:

The needs of the target market

Product testing

Regular monitoring and review of each product

Where there has been a significant change or amendment to the product, we have put the amended product through our PROD assessment

Consideration of the charging and fee structure for each product

Our rationale regarding our choice of distribution chain

Our approval process identifying whether each product provides fair value to customers in the target market, including whether it will continue to do so for a reasonably foreseeable period, considering the price model we use to calculate the risk premium for:

– The initial policy term

– Any future renewal

Obtaining the appropriate information on product value and governance from the product manufacturer

The charging structure of the product including examination of whether the costs and charges are compatible with how useful the product is to consumers and the transparency of costs and charges.

How do we assess that this product offers Fair Value to the end Customer?

We produce monthly M.I. that is reviewed at Board Level to ensure this product offers Fair Value. The M.I. that is reviewed monthly is as follows:

New Business Income

Renewal retention rates

Loss Ratios

Claims review including withdrawn claims, repudiated claims, claims paid

New Business conversion rates

Discounted cases

These reports allow us to assess the Fair Value and ensure that the products are competitive and targeting the correct customer groups.

In addition we look at:

Our fees charged

End Broker fees

End Broker Premium Finance APRs

Taking into consideration all of these factors we are confident that our products are competitive, correctly targeted and offer the end customer excellent value for the product they are purchasing.

In addition to the above, we confirm that we have effective procedures in place to ensure that, on a continuing basis, the products offer fair value to customers.

While we have allocated ownership of product governance to a named Senior Manager, overall responsibility for our product governance and distribution strategy rests with our Board (Senior Managers).

They are responsible for ensuring that the products we offer, and our distribution methods, distinguish us from our competition by delivering superior quality cover and fair and positive outcomes for our customers.

It is crucial that our customers can trust us and have confidence in the policies and products they buy from us.

If you have any queries regarding the above, please contact us by email: richardburgess@alanblunden.co.uk

Property matters in the UK are often in the headlines. Whether you are a homeowner or a landlord, it helps to stay abreast of the news and keep one step ahead of those changes that may affect your current – or planned – investments. Read on for our news round-up where we look over some of those headlines...

“Anti-Landlord” Renters Reform Bill published by the government

Billed by the government as the pathway to a fairer deal for tenants, a story on the Renters Reform Bill in Landlord Today recently branded the proposed legislation “anti-landlord”.

The proposed reforms are certainly likely to make life easier for tenants:

• landlords may find it harder to secure repossession orders, for example;

• tenants will be given formal rights to keep pets in their rented property;

• privately let properties must reach a new Decent Homes Standard; and

• landlords will be obliged to sign up to a new Ombudsman scheme.

The reform of the private rented sector has been mooted by the government since at least 2019 and one of its most controversial aspects is the abolition of so-called “no-fault” evictions (under Section 21 of the Housing Act).

The abolition of Section 21 will be welcomed by tenants since it gives them greater security of tenure. To compensate for this loss of advantage by landlords, however, the government has promised to make it easier for them to repossess the let property they own if tenants fail to pay the rent when it falls due or engage in anti-social behaviour. Landlords will also be given greater powers to repossess their property if they plan for it to be occupied by a close family member.

Leaseholds will not be abolished by government this year

Despite earlier promises, the government will not be abolishing the system of leasehold ownership of property any time this year, reported the BBC in May.

An undertaking to scrap the contentious leasehold system was given by the Housing Secretary Michael Gove. Although legislation designed to improve the lot of leaseholders is now promised for later this year, the proposals will not include a date for the abolition of this now outdated form of property ownership.