TV ad is the cat’s whiskers
This past May, Hiscox launched its new marketing campaign across a range of media. It includes its first-ever television advert, targeted at mid- and high-net-worth households. The idea of the advert, which features a man ignoring a series of extraordinary signs of bad luck, is to demonstrate that Hiscox policyholders can be completely confident.
The advert’s cinematic style offers a fresh approach to traditional insurance advertising, reflecting Hiscox’s brand positioning. Pete Atherton, account director of Inferno, the creative agency who handled the campaign, says: “It is different to the usual cheesy insurance advertising style and concentrates on Hiscox’s extraordinariness. This is summed up in our killer message – that half the claims that Hiscox paid out last year would not have been covered by a standard policy.”
The campaign aims to increase brand awareness and market demand for specialist home insurance. There are 2.8 million high-net-worth households in the UK (16 per cent of all households) and Datamonitor research indicates that just 25 per cent of that market currently has a specialist insurance policy. This represents a great opportunity for both brokers and insurance companies.
As brokers remain Hiscox’s main route to market, benefits of the advert include driving new business and assisting in cross-selling.
Helen Ascroft, a broker with CBG Group, says: “It has certainly enhanced Hiscox’s brand profile in terms of client awareness. When speaking to clients and recommending Hiscox products, it is now interesting to hear comments such as ‘My daughter’s with Hiscox and I’ve just seen their advert on TV’.”
According to Steve Sherlock, Hiscox’s head of UK Retail marketing, “We’ve noticed a significant upturn in new business across the Group. For example, commercial broker quote volumes in May were up by 13 per cent compared with April, and household quotes were up by 20 per cent.”
The campaign will continue throughout the summer, with the advert being re-aired in September for seven weeks.
Cut turnaround times by 50%
Faster turnaround times and easier access to decision-makers are just two of the benefits from Hiscox’s expanded underwriting service, launched this summer. New investment means that more broker business will be transferred to the new Hiscox Underwriting Centre based in Colchester, where business turnaround times are targeted to drop by 50 per cent.
This team of experienced underwriters already services mid-net-worth household and commercial insurance products, and now includes the full range of Hiscox products.
By transferring the servicing of business, more capacity will be released in Hiscox’s regional offices, enabling them to provide greater support and development for brokers’ business.
From 26 June, the first 30 brokers’ businesses were serviced by the Hiscox Underwriting Centre. We will expand the coverage nationwide between September and November.
Hiscox is committed to expanding its regional presence to provide local support for all brokers, with the development of two new regional offices planned for the near future.
Evolution or extinction?
All brokers are acutely aware of the challenges posed by direct insurers, so what does the future hold?
A Datamonitor report released last December says that:
- brokers’ market share in personal lines has been declining steadily, not necessarily due to a systematic failing on their part but rather the development of alternative distribution channels
- wealthier consumers tend to purchase household insurance via a broker more often than the less well-off
- many brokers are successfully adopting a quasi-direct model, increasing the usage of telephone and the internet to arrange policies
- brokers are actively seeking new distribution channels, such as corporate partnerships, online ventures and broker networks
- many brokers (high-street brokers in particular) see migrating from personal to commercial risks as a key survival tactic.
Tim Andrews, MD of Personal Clients at Clarke Roxburgh Insurance Brokers, responds: “I agree that the broker share of the personal lines market has been declining but the death knell of the high street personal broker is very premature. Brokers who keep at the forefront of technology, offer a first-class service and maximise every opportunity will prosper.
“As a company, we have widened our distribution channels by forming a number of affinity partnerships, both nationally and locally, to our branch network, and this is paying dividends.”