Product Fair Value Assessments
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In accordance with FCA PROD Rules 4.2.29 R, we are sharing the following information about our products with our distributors:
- Product target market statements - containing key information about the intended target market of each standard product. Our target market statements are intentionally provided at category level to clarify who our products are designed for, who they are not intended to support and how we expect the product to be distributed to clients.
- The outcome of fair value assessments - these provide you with the outcome and conclusion of the full fair value assessment that we have completed
The information displayed on this page is intended for distributors only and must not be provided to the end customer / insured.
Please speak with your underwriting contact directly if you require specific product information to share with customers, such as policy wordings and IPIDs.
Product Governance Process
Fair Value Assessment Criteria
We assess whether our products and services deliver fair value by considering the relationship between overall price paid by our customer and the quality of the benefits and services that they receive. The assessment of fair value may include review of the following management information, plus feedback and insights obtained throughout the product lifecycle:
- Benchmarking against other insurers
- Premium adequacy
- Renewal retention rates
- Internal loss ratios
- Other claims data, e.g. speed of settlement and relative frequency declinatures
- Lloyd's loss ratios
- Commission ranges
- Complaints data
- Distributor feedback
The following is excluded from the review and as a distributor you must consider:
- Any additional fees that you charge a customer and the effect on the value of the product
- Any ancillary or additional products (including Retail Premium Finance) sold alongside the product which may affect the value of the product or duplicate cover provided by the product
Distributor responsibilities
Distributors are required to provide manufacturers with information on remuneration and services provided in the chain as set out under the PROD rule 4.2.14P R. In order to provide such information, we have created a Product Information Exchange Questionnaire for distributors to complete.
We expect distributors to disclose the nature and basis of remuneration to the customer and to ensure that remuneration does not conflict with the customers’ best interest rule.
Target Market Statements and Fair Value Assessments
Cargo – Annual Stock Throughput
Target Market Statement
This product is designed to provide cover for risks of physical loss of or damage to goods whilst in transit and optionally whilst in storage.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Cargo – One-off Shipments
Target Market Statement
This product is designed to provide cover for risks of physical loss of or damage to goods whilst in transit.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Cargo – Specified Risks
Target Market Statement
This product is designed to provide cover for risks of physical loss of or damage to goods whilst in transit.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Cargo – Freight Forwarders, as agents
Target Market Statement
This product is designed to provide cover for risks of physical loss of or damage to goods whilst in transit.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Cyber
Target Market Statement
This product is designed for UK-domiciled small- and medium-sized enterprises with a turnover of less than GBP 200 Million.
This product is not suitable for UK-domiciled enterprises with a turnover of more than GBP 200 Million, retail customers or risks domiciled outside the UK.
There are also specific sectors that we do not cover, which include adult entertainment, payment processors, energy industries, search engines, political organisations, investment/state banks, currency exchange, council/local authority, social networks, and coach or bus operators.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Engineering – Construction
Target Market Statement
This product is suitable for businesses involved in small to medium sized construction and engineering projects including main contractors and sub-contractors and consumers where they have a contractual responsibility to insure under the terms of the contract with a main contractor.
Not intended for: This product is not suitable for consumers undertaking self-build projects, businesses involved with heavy civil engineering or industrial projects and projects in excess of GBP 20 Million.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Engineering – Computer
Target Market Statement
This product is designed to provide cover for loss of or damage to hardware being computers and their peripherals and software, telecommunications equipment, electronic office equipment and portable equipment.
This product is suitable for businesses that own, lease and use computer equipment.
This product is not suitable for businesses that solely use computer equipment to control machinery or retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Engineering – Deterioration of Stock
Target Market Statement
This product is designed to provide cover for deterioration of temperature-dependent goods in cold stores, or other refrigeration facilities.
This product is suitable for businesses that own or store third party temperature dependent goods in cold stores or other refrigeration facilities.
This product is not suitable for businesses that are retail locations, do not have any maintenance procedures in place or do not check temperatures within the cold stores of refrigeration facilities.
This product is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Engineering – Machinery Damage and Loss of Profit
Target Market Statement
This product is designed to provide cover for breakdown (B), explosion (E), sudden and unforeseen damage (S), damage to own surrounding property (O) or damage to lifted goods (L) as detailed in the policy schedule for the specified cover reference.
This product is suitable for businesses that own and operate machinery including that which requires statutory inspection within commercial locations such as offices and factories.
This product is not suitable for businesses that do not have any machinery maintenance procedures or for items that do not have a valid statutory inspection certificate where that is a requirement.
This product is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Engineering – Machinery Movement
Target Market Statement
This product is designed to provide cover for loss of or damage to machinery, plant and equipment described in the schedule occurring during the operations insured.
This product is suitable for specialist machinery movement contractors that move third party machinery for a fee or machinery owners that are having their own machinery moved either by their own employees or a third party.
This product is not suitable for non-specialist machinery movement contractors or retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Engineering – Plant
Target Market Statement
This product is designed to provide all risks cover for physical loss of or damage to plant, equipment and temporary buildings owned or hired.
This product is suitable for businesses that own or hire mobile machinery and equipment, mainly construction.
This product is not suitable for businesses that own static installed equipment used for processing such as recycling and equipment that is used in, on water or any equipment that is a prototype.
This product is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Freight Liability – Couriers
Target Market Statement
This product is designed to provide cover for the insured’s liability under their terms and conditions arising out of their business activities in respect of customers’ goods in their custody or control including liability for physical loss of or damage to customers’ goods during transit.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Freight Liability – Freight Forwarders
Target Market Statement
This product is designed to provide cover for freight forwarders’ liability under their terms and conditions and international conventions arising out of their business activities in respect of customers’ goods in their control or control, including:
- liability for physical loss of or damage to customers’ goods,
- liability for financial loss arising from loss, damage to or mis-delivery of customers’ goods,
- liability for Errors and Omissions made by the insured caused by a failure to comply with instructions, faulty arrangements or clerical errors.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Freight Liability – Haulage and Freight
Target Market Statement
This product is designed to provide cover for the insured’s liability under their terms and conditions and international conventions arising out of their business activities in respect of customers’ goods in their custody or control, including:
- liability for physical loss of or damage to customers’ goods during transit and (if insured) storage
- liability for consequential financial loss arising from loss, damage, accidental delay to or accidental mis delivery of customers’ goods and
- liability for Errors and Omissions made by you caused by a failure to comply with instructions, faulty arrangements or clerical errors.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Freight Liability – Warehouse Keepers
Target Market Statement
This product is designed to provide cover for the insured’s liability under their terms and conditions and international conventions arising out of their business activities in respect of customers’ goods in their control or control, including;
- liability for loss of or damage to customers’ goods during storage,
- liability for consequential financial loss arising from damage to customers’ goods in storage and Liability where the insureds trading conditions cannot be enforced by law.
This product is only suitable for commercial customers; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Marine Equipment (ROV)
Target Market Statement
This product is designed to provide cover against loss of or damage to the insured’s owned or hired in equipment whilst in store, whilst in transit at the operational site and whilst in use.
This product is designed for marine equipment owners and operators in various sectors including offshore renewables, marine research, oil and gas, aquaculture telecommunication and the military and leisure sector. This is subject to internal underwriting guidelines and risk appetite.
This product is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Motorsport
Target Market Statement
This product is designed to cover physical loss of or damage to competition vehicles, trailers, tools and portable equipment; reasonable costs incurred to minimise damage; general average and salvage charges for which the insured becomes liable following an incident at sea.
This product is only suitable for commercial race teams; it is not suitable for retail customers.
Outcome of Fair Value Assessment
Fair Value
Product Information Exchange Pack
Terrorism
Target Market Statement
This product is suitable for commercial business operations and property owners that own or control residential or commercial property. For commercial and property owners, the customer would need to own physical property as a minimum requirement, on which business interruption can be insured in addition to the exposure, not in isolation.
This product is not suitable for retail customers or for high end government assets such as military and embassies.