FairValueAssessment–AngelRiskManagement –ContingencyCancellations&Abandonment
1
CONFIDENTIALITYLEVEL
FVAOutcome:AngelRiskManagement–Contingency
ProductOverview
Keyfindings
Theproductcoverstheascertainednetlossshouldanyinsuredevent(s)becancelled,abandoned,postponed,interrupted,curtailedorrelocated,whichcancellation, abandonment,interruption,curtailmentorrelocationisthesoleanddirectresultofacausenototherwiseexcludedwhichoccursduringtheperiodofinsuranceandisbeyond controlofboththeparticipantandtheinsured.
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
Pleasenote:AngelRiskManagementarenolongerwritingnewContingencyCancellationandAbandonmentpoliciesfrom1August2022.Thebookwillbeallowedtorun-offand policiestolapse,withpolicieslapsingnolaterthan31July2023.
DateFairValueassessment completed
FairValueAssessment Outcome:
2022
Theoutcomeofthereviewshowstheproductdeliversvalue.ThisproductwillthereforebemonitoredasperBAUandreviewedagainin12monthsasper PROD 4.2.34 requirement toundertakeregularproductreviews.Thereisnoactionrequiredfromdistributorsatthistime.
Asummaryofwhyweconcludedthisproductisdeliveringvalueissetoutbelow:
• Lowcancellationfrequency
• Lowclaimscomplaintsasa%oftotalclaims
• Claimsfor2021-giventherelativelylownumberofpoliciesinforceandtherelativelylowGrossWrittenPremiumthisisnotanimmediateconcern;howeverthismetricwillbe monitoredbyAXAXLtoensurecustomerscontinuetoreceivefairvalue.
Ourapproachtothisproductreview hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdinconjunctionwiththis assessment.
Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyussowecanconsidertheimpactontheproductinourcapacity ascarrier.
Otherfactorswhichmayberelevanttodistributors n/a
2
ProductGovernanceReview
FairValueAssessment–AngelRiskManagement –Cyber
1
CONFIDENTIALITYLEVEL
FVAOutcome:AngelRiskManagement–Cyber
Keyfindings
ProductOverview
Thisproductisdesignedforthosewhorequireinsuranceprotectionagainstthefinancialimpactofcyberrisks,suchashackerattacks,ransomware,socialengineeringfraud,denial ofserviceattacks,reputationaldamageorcompensationclaimsmadeagainstthebusinessforfailingtokeeppersonalorcommercialdatasecure.Havingacomprehensivecyberinsurancepolicynotonlyprovidesfinancialprotectioniftheworsthappens,butalsoprovidesaccesstoexpertadviceandsupportwhenanincidentoccurs,suchasIT,legal, forensicandmediarelationstominimisethedisruptiontothebusinessandanyreputationaldamage.
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
DateFairValueassessment completed
FairValueAssessment Outcome:
2022
Theoutcomeofthereviewshowstheproductdeliversvalue.ThisproductwillthereforebemonitoredasperBAUandreviewedagainin12monthsasper PROD 4.2.34 requirement toundertakeregularproductreviews.Thereisnoactionrequiredfromdistributorsatthistime.
Asummaryofwhyweconcludedthisproductisdeliveringvalueissetoutbelow:
• Lowcancellationfrequency
• Complaintslevel
• Lowrepudiationrate
• Grosslossratio(GLR)Thisisrelativelylow,howeverthepositivedifferencebetweentheaverageclaimspay-outandtheaveragepremiumindicatesthattheproductprovides valueforcustomers.ThiswillcontinuetobemonitoredbyAXAXL.
Ourapproachtothisproductreview hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdinconjunctionwiththis assessment.Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyussowecanconsidertheimpactontheproductin ourcapacityascarrier.
Otherfactorswhichmayberelevanttodistributors
2
n/a
ProductGovernanceReview FairValueAssessment–AngelRiskManagement –DirectorsandOfficers(D&O)
1
CONFIDENTIALITYLEVEL
AngelRiskManagement–DirectorsandOfficers(D&O)
FairValueAssessment–ProductOverview
ProductOverview
DirectorsandOfficersLiabilityInsurancecoversCompanyDirectors,OfficersandSeniorManagersagainstclaimsarisingfromtheirdecisionsandactions takenwhilstmanagingtheirbusiness.
KeyCover
Thisproductisdesignedtocover:
•LossesthatarisefromaclaimagainstaDirectorand/orTrusteeintheircapacityassuch:
•AnysumspaidtoorheldliabletopaytheDirectorand/orTrusteebywayofanadvancementorreimbursementinrelationtotheDirector’sand/or Trustee’sliabilityoranemploymentpracticeswrongfulact;
•Shareholdersderivativecosts;and
•DefencecostsincurredbytheDirectorand/orTrusteeinconnectionwithanidentitytheftclaim.
•Extensionsincludeadditionalexcessprotectionforthecustomer’sboard,automaticacquisitioncover,corporatemanslaughter,differenceinconditions, discoveryperiod,emergencycosts,outsideboards,personalappointments,regulatorycrisiscosts,retirementrunoff,spouse/estates,takeoversand mergersrun-off,corporatelegalliabilityand/ororganisationalandprofessionalliabilityextension
AdditionalServiceElement:Freeguidance,legaladviceandriskmanagementsupportarealsoprovidedtocustomersaspartofthepolicy.
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomthe productisnotappropriateandwillnotprovidetheintendedvalue
2
AngelRiskManagement–DirectorsandOfficers(D&O)
Keyfindings
FairValueassessmentYear: 2022
FairValueAssessmentOutcome:
Theoutcomeofthereviewshowstheproductdeliversvalue.ThisproductwillthereforebemonitoredasperBAUandreviewedagainin12monthsasperPROD 4.2.34requirementtoundertakeregularproductreviews.Thereisnoactionrequiredfromdistributorsatthistime.
Asummaryofwhyweconcludedthisproductisdeliveringvalueissetoutbelow:
•Lowcancellationfrequency
•Lowclaimsrepudiationrateagainstclaimsacceptancyrate
•Lowclaimscomplaintsasa%oftotalclaims
•Grosslossratio(GLR)isrelativelyonthelowsidehowevertheproductprovidespeaceofmindaswellasguidance,legaladviceandriskmanagementsupportintheeventof anincidentthatmaygiverisetoaclaim.Thiswillbemonitoredclosely,andafollowupactivitywillbeundertakenbyAXAXL.
OurapproachtothisproductreviewhasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdinconjunctionwiththis assessment.
Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyussowecanconsidertheimpactontheproductinourcapacity ascarrier.
Otherfactorswhichmayberelevanttodistributors
3
n/a
ProductGovernanceReview FairValueAssessment–AngelRiskManagement –ProfessionalIndemnity-(OfficePackage)
1
CONFIDENTIALITYLEVEL
AngelRiskManagement–ProfessionalIndemnity(OfficePackage)
FairValueAssessment–ProductOverview
ProductOverview
ProfessionalIndemnityofferscoverforcivilliabilityarisingfromnegligentadvice.Angel’smultilineofficepackageproductsallowthecustomertocombineaProfessionalIndemnity policywithDirectorsandOfficers,PublicLiability,Employers’Liability,OfficeContentsandAllRisksandBusinessInterruptionallononepolicywithsinglekeyingoftheinsured's details.
Therearethreeversionsofthisproductforslightlydifferenttargetmarkets:
•Accountantspackage
•InformationTechnologypackage
•Miscellaneousindustrypackage (pleasenote:constructionandarchitectsPIproductsarenotsoldaspartofapackage)
KeyProductInformation
Theproductcoversthefollowing:
•ProfessionalLiability
•Liability
•Employersliability
•MaterialDamage
•BusinessInterruption
•Directors&OfficersLiability
•D&OLiability
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
2
FVAOutcome:AngelRiskManagement–ProfessionalIndemnity (OfficePackage)
FairValueAssessment–Keyfindings
FairValueassessmentYear
FairValueAssessmentOutcome:
2022
Thereviewdidnotidentifycrystalisedproductvalueissueswhichrequireimmediateattentionorremediation.Therearepotentialemergingproductvalueissues.Asaresult,the productwillbemonitoredclosely
Keyriskindicatorsthatareindicatingproductvalueandthathaveledtofurtherreviewsbeingneededandwhereapplicable,actionsthatwillbetakenbyAXAXLtoaddressareas follow:
-LowGrossLossRatio
-HighCancellationFrequency
-LowClaimsFrequency
ThesefindingsindicatepotentialissueswithproductvalueandshouldbemonitoredcloselybyAXAXL.Themonitoringactivityandfollow-upreviewwillcarefullyconsiderthe pricingmetrics(includingGLRandclaimspay-out)andwhetheranyproductvalueissuesmaterialisewhichwarrantaformalpricingreviewtoensuretheproductcontinuesto providefairvalue(forareasonablyforeseeableperiod).
Ourapproachtothisproductreview(asdetailedinouroverview)hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdin conjunctionwiththisassessment.
Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyusimmediatelyasthiscouldimpactourfairvalueassessment fortheproductandrequiremoreimmediateactiontobetaken.
Otherfactorswhichmayberelevanttodistributors
Pleasenote:TheperformancemetricsandMIwerereviewedatthepackagelevelandinformationwasnotavailableatthelevelofeachcomponentproduct,assucha comprehensiveevaluationcouldnotbemadeofthefairvalueprovidedbyeachcomponentproduct.
3
ProductGovernanceReview
FairValueAssessment–AngelRiskManagement
–ProfessionalIndemnity-(Non-OfficePackage)
1
CONFIDENTIALITY
LEVEL
AngelRiskManagement–ProfessionalIndemnity(Non-OfficePackage)
FairValueAssessment–ProductOverview
ProductOverview
Angel’sProfessionalIndemnityproductprovidescoverforcompaniesofferingaprofessionalservicetotheirclientsandwillbetriggeredintheeventofanegligenceclaimoracivil liabilityclaimresultingfromtheservicesprovided. Thereareversionsofthisproductforslightlydifferenttargetmarkets,theseversionslargelyhavethesimilarpolicywording:
• Miscellaneousprofessional
• Constructiontrades(ContractorsDesignandProfessionalServices)
• Accountantsprofessional
• Technologyprofessional
• Marketing,advertisingandpublishing
• ArchitectsandConsultingEngineers
KeyProductInformation
Theproductfeaturesandbenefitsvarydependingontheexactproductandtargetmarket.Examplesoffeatures/coverinclude(pleaseseethepolicywordingforexactoffering):
• Negligentacts,errors,omissionsorbreachofdutyor othercivilliability
• Employeedishonesty
• Unintentionallibelandslander
• Unintentionalbreachofconfidentiality
• Unintentionalinfringementofcopyright,trademarkor patent
• Lossofdocumentsorelectronicdata
• Defencecostsforallegedoffencesunderdata protectionlaws
• Criminalprosecutionsdefencecosts
• Indemnitytoprincipal
• Paymentofoutstandingfeestomitigateaclaim
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
2
FairValueAssessmentOutcome:
Package)
Keyfindings
AngelRiskManagement–Professional
Indemnity (Non-Office
FairValueassessmentYear: 2022
FairValueAssessment Outcome:
The review did not identify crystalised product value issues which require immediate attention or remediation.There are potential emerging product value issues. As a result, the product will be monitored closely
Keyriskindicatorsthatareindicatingproductvalueandthathaveledtofurtherreviewsbeingneededandwhereapplicable,actionsthatwillbetakenbyAXAXLtoaddressareas follow:
- LowGrossLossRatio(GLR)
- Highclaimsrepudiation
- Lowaverageclaimspay-out
- Lowcancellationfrequencyindicatesnoissueshoweverthisisveryclosetothethresholdwhichcouldpotentiallyresultsinanissueassuchthisshouldalsobeclosely monitored
Ourapproachtothisproductreview(asdetailedinouroverview)hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdin conjunctionwiththisassessment.
Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyusimmediatelyasthiscouldimpactourfairvalueassessment fortheproductandrequiremoreimmediateactiontobetaken.
Otherfactorswhichmayberelevanttodistributors
3
n/a
ProductGovernanceReview FairValueAssessment–AngelRiskManagement –AngelRiskManagement–Cargo
1
CONFIDENTIALITYLEVEL
AngelRiskManagement–AngelRiskManagement–Cargo
FairValueAssessment–ProductOverview
ProductOverview
ThisisacargoinsurancepolicythatprovidesinsuranceagainstlossordamagetogoodsduringtheVoyage/TransitandontheConveyances.
Keyproductinformation
Thisproductcovers:
•Totalandpartiallossestogoods,includingcostsofrecoveryand/orrepairinggoods.
•Costsofreturningdamagedgoodstomanufacturersand/orsuppliersforrepairbyairfreight.
•Costsofairfreightandreplacementgoodsfrommanufacturersand/orsupplierstodestination,regardlesswhetherthegoodslostordamagedwereoriginallydespatchedbyair freight.
•Goodsduringloadingandwhilstbeingpackedbyprofessionalpackersandwhilstatprofessionalpackerspremisesandstorageintheordinarycourseoftransit, containerisationandtranshipping.
•Additionalchargesincurredinunloading,storingandforwardinggoodstothedestinationtowhichthegoodsareinsuredfollowingreleaseofgoodsfromavesselarrestedor detainedatordivertedtoanyotherportorplacewherethevoyageisterminatedduetoeventssetoutinthepolicy.
•Costsinconnectiontoremovinganddisposingofthedebrisofanygoods.
•Costsinconnectiontothetransferofgoodsfromoneconveyancetoanotherintheeventofanaccidenttotheoriginalconveyance.
•Lossordamagetogoodswhilstbeingtransferred.
•Lossordamagetogoodscausedbygovernmentalauthoritiestopreventormitigateapollution,hazardorthreat,wheregoodshavebeendamagedasaresultoftheaccidentor occurrencewhichgaverisetothethreatofpollution.
•Additionalexpenseincurredbyyouindischarging,handling,storing,reloadingortransportingsoundand/ordamagedgoodsbyanymeansotherthanthenormalmethodsor otherthanatnormalrates
•Lossordamageintheeventofexercisingarightoflienongoods,orinterruptingtheirtransit,orsuspendingthesalecontractwhilstgoodsareintransitwhenitispracticable foryoutodosotosafeguardyourinterest.
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
2
FVAOutcome:AngelRiskManagement–Cargo
FairValueAssessment–Keyfindings
FairValueassessmentYear
FairValueAssessmentOutcome:
2022
Thereviewdidnotidentifycrystalisedproductvalueissueswhichrequireimmediateattentionorremediation.Therearepotentialemergingproductvalueissues.Asaresult,the productwillbemonitoredclosely
Consideringtheproductperformancemetricsandfindingsfromthereviewitwashighlightedthatduetothenoveltyoftheproduct(Introducedin2021Dec)andthefactthatthere isnomaturedata,AXAXLwillbemonitoringthisproductcloselyasitcontinuestodevelopandwillbereviewedagaininthenext9months.TheKeyMetricsindicatedthebelow results:
Noclaimsdata-giventhattherewerenoclaims,allotherclaimsrelatedmetrics(i.e.
ClaimssettlementTime)cannotbeassessed.
GrossLossRatioisrelativelylowduetoaveragepremiumandthelimitedamountofpoliciesinforce,therearenoimmediateconcernsthattheGLRindicatespotential productvalueissueshowevershouldbemonitoredcloselyasproductcontinuestodevelop.
Ourapproachtothisproductreview(asdetailedinouroverview)hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdin conjunctionwiththisassessment.
Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyusimmediatelyasthiscouldimpactourfairvalueassessment fortheproductandrequiremoreimmediateactiontobetaken.
Otherfactorswhichmayberelevanttodistributors n/a
3
ClaimsAcceptanceRate,ClaimsRepudiationRate,AverageclaimsPay-out,Average
ProductGovernanceReview FairValueAssessment–AngelRiskManagement –SportsandLeisure
1
CONFIDENTIALITYLEVEL
AngelRiskManagement–SportsandLeisure
FairValueAssessment–ProductOverview
ProductOverview
ThisisasportandLeisureinsurancePolicycoveringpublicliability,employersliability,professionalindemnity,personalaccident,sportsequipmentandpersonaleffectsasdetailin thePolicySchedule.
Keyproductinformation
Thisproductallowstheinsuredtoselectupto5activities(fromaspecifiedlist)forcover.
Theproductcoversforthefollowing:
1.PublicLiabilityCover
•Coverforinjuryordamagetothirdpartiesintheconductofinsured’sbusinesswheretheinjuryordamageoccursduringtheperiodofinsurance
2.EmployersLiability
•Coverforinjurytoinsured’semployees.Coverisappliedwheretheinjuryiscausedduringtheperiodofinsuranceandextendstoincludeinjurywhichmanifestsitself aftertheemployeehaslefttheinsured’semploy
3.ProfessionallyLiability
•Coverforinsured’sliabilityinrespectofnegligentacts,errorsoromissions,employeedishonesty,libelandslander,unintentionalbreachofconfidentiality,lossof documentorinfringementofcopyrightorunintentionalbreachofawrittencontract.
4.ProductLiability
•Coverfortheinsured’sdamagesinconnectionwithanyproduct
5.MaterialDamage
•Thepolicyprovidesallriskscoverfordamagetotheinsured’ssportsandbusinessequipment.
6.Personalaccident
•CoversanyinsuredpersonwhosuffersBodilyInjurycausedbyanaccidentwhichresultsindeath,permanenttotaldisablement,permanentpartialdisablementor temporarytotaldisablement;and/ordentalexpensesupto£250;reimbursementofexpensesasin-patientupto£25perfull24-hourperiod(maxof14).
Note:Theproductperformancemetricswereonlyavailableatthepackageproductlevelandwerenotavailableatthecomponentproductlevel.Thereforeacomprehensivereview ofthevalueofeachcomponentproductcouldnotbecompleted.
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
2
FVAOutcome:AngelRiskManagement–SportsandLeisure
FairValueAssessment–Keyfindings
FairValueassessmentYear
FairValueAssessmentOutcome:
2022
Thereviewdidnotidentifycrystalisedproductvalueissueswhichrequireimmediateattentionorremediation.Therearepotentialemergingproductvalueissues.Asaresult,the productwillbemonitoredclosely
Keyriskindicatorsthatareindicatingproductvalueandthathaveledtofurtherreviewsbeingneededandwhereapplicable,actionsthatwillbetakenbyAXAXLtoaddressareas follow:
•LowclaimsfrequencyandLowClaimspay-outs
•LowGrossLossRatio(GLR)
•HighCancellationFrequency–ForthereviewitwastakenintoconsiderationthatthiswasduetotheCOVID-19pandemic
ThesefindingsindicatepotentialissueswithproductvalueandshouldbemonitoredcloselywithafurtherreviewbyAXAXL.Themonitoringactivityandfollow-upreviewwill carefullyconsiderthepricingmetrics(includingGLRandclaimspay-out)andwhetheranyproductvalueissuesmaterialisewhichwarrantaformalpricingreviewtoensurethe productcontinuestoprovidefairvalue(forareasonablyforeseeableperiod).
Ourapproachtothisproductreview(asdetailedinouroverviewhasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdin conjunctionwiththisassessment.
Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyusimmediatelyasthiscouldimpactourfairvalueassessment fortheproductandrequiremoreimmediateactiontobetaken.
Otherfactorswhichmayberelevanttodistributors
Pleasenote:TheperformancemetricsandMIwerereviewedatthepackagelevelandinformationwasnotavailableatthelevelofeachcomponentproductlistedoutinslide5,as suchacomprehensiveevaluationcouldnotbemadeofthefairvalueprovidedbyeachcomponentproduct.
3
ProductGovernanceReview
FairValueAssessment–AngelRiskManagement –Terrorism
1
CONFIDENTIALITYLEVEL
AngelRiskManagement–Terrorism
FairValueAssessment–ProductOverview
ProductOverview
Angeloffersaninnovativewayofcoveringitsinsureds’propertyagainstactsofterrorismwhethertheirmortgagelenderrequiresthemtohavethecover ortheyarejustseekingpeaceofmind.Angelcanprovideterrorisminsuranceforcommercialand/orresidentialpropertyorpropertyportfolios,highnet worth,constructionrisksandcontractworksandcanprovidecoverwithintheUnitedKingdom,ChannelIslands,IsleofManandNorthernIreland.
Keyproductinformation
• Theproductcoversthefollowing:
1.Damage:Damagetoinsured’sproperty
2.Liability:Theinsurerswillpayonbehalfoftheinsured,anysumstheymaylegallybeobligedtopayascompensations(i.e.,interest,claimant's costs,feesandexpenses),anddefencecosts,foranyclaim(s)firstbroughtagainstthem,andresultingfromanoccurrencetakingplaceduringthe periodofinsuranceandwhichcauses:Bodilyinjury;orDamage
3.BusinessInterruption:Theinsuredwillbecompensatedforfinanciallossresultingfromtheinterruptionoforinterferencewiththeirbusiness resultingfromanoccurrencewhichcausesdamage,aVerifiedThreat,anactionoradviceofacivilormilitaryauthorityinsured,andanoccurrence whichcausesdenialofaccesstotheinsured’spremises.
4.PersonalAccident:Pay-outwillbeforBodilyInjurytoanInsuredPersonwhilstonthePremisses orwithintheVicinityofthePremises.
• ThisproductisdesignedtoprovideasustainablealternativetogovernmentbackedPoolRefixedpriceinflexibleoption.
• Terrorismcoverisfrequentlyrequiredtosatisfyfinanceorleaserequirements.
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomthe productisnotappropriateandwillnotprovidetheintendedvalue
2
AngelRiskManagement–Terrorism
Keyfindings
DateFairValueassessment completed 2022
FairValueAssessment Outcome:
Theoutcome ofthereviewshows theproduct deliversvalue.Thisproduct will thereforebemonitored asperBAU andreviewed againin12months asper PROD 4.2.34 requirement toundertake regularproduct reviews. Thereisnoaction requiredfromdistributors atthistime.
Asummaryofwhyweconcluded thisproductisdeliveringvalueissetoutbelow:
• Lowcancellationfrequency
• Lowclaimsrepudiationrate
TheTerrorismProductisa‘peaceofmind’productwhichisunlikelytohaveanyyearlyclaims,resultinginGrossLossRatio(GLR)of0.Forthisproduct,aGLRof0doesnot indicatepoorvalueforcustomersgiventhecontextoftheproduct.Followinganalysis,thereisnosignofvaluenotbeingprovidedtocustomers.Inaddition,outofthefivelevelsof terrorismthreatsintheUK,thecurrentlevelis‘substantial’whichsuggeststhatanattackislikely.Ifaneventdoesoccur,ARMmayberequiredtopayoutclaims,therefore chargingpremiumsabovecompetitors,butbelowPoolReratesshouldensurebusinesssustainability.
Ourapproach tothisproductreview hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdinconjunction withthis assessment.Onconducting yourownreview,whereissuesareidentified thatarenotidentified withinthisreview,pleasenotifyussowecanconsidertheimpactonthe productinourcapacity ascarrier.
Otherfactorswhichmayberelevanttodistributors
3
n/a
ProductGovernanceReview
FairValueAssessment–AngelRiskManagement –JointContractorsTribunalInsurance(JCT)
1
CONFIDENTIALITY
LEVEL
FVAOutcome:AngelRiskManagement–JointContractorsTribunalInsurance(JCT)
Keyfindings
ProductOverview
ThiscoverispurchasedbyContractorsonbehalfofemployerstoprovideprotectionagainsttheemployer’sliabilityforloss,claimsorproceedingsthatariseduetonon-negligent damagetoproperty(otherthanthecontractworksthemselves)whilstundertakingabuildingcontractduetocollapse,subsidence,heave,vibration,weakeningorremovalof supportorloweringofgroundwater.
JCTpoliciesarefixedtermpolicieswhichcoverbuildingperiodandmaintenance/defectsperiod(likelytobeupto36months+12months)
SeedetailedTargetMarketStatementfordetailontherangeofcustomerstheproductisdesignedforaswellasthegroupsofcustomersforwhomtheproductisnotappropriate andwillnotprovidetheintendedvalue.
DateFairValueassessment completed
FairValueAssessment Outcome:
2022
Theoutcomeofthereviewshowstheproductdeliversvalue.ThisproductwillthereforebemonitoredasperBAUandreviewedagainin12monthsasper PROD 4.2.34 requirement toundertakeregularproductreviews.Thereisnoactionrequiredfromdistributorsatthistime.
Asummaryofwhyweconcludedthisproductisdeliveringvalueissetoutbelow:
• Lowcancellationfrequency
• Lowrepudiationrate
• Claimscomplaintsasa%oftotalclaims
• 1yearGrosslossratio(GLR)isrelativelylowsidebutastheproductmaturesvalueisdemonstrated
Ourapproachtothisproductreview hasutiliseddataandMIreadilyavailabletoAXAXL.Asadistributor,youmaywishtoconsidermetricsyouholdinconjunctionwiththis assessment.Onconductingyourownreview,whereissuesareidentifiedthatarenotidentifiedwithinthisreview,pleasenotifyussowecanconsidertheimpactontheproductin ourcapacityascarrier.
Otherfactorswhichmayberelevanttodistributors n/a
2