Five things to consider when choosing where to place your schemes business

In our recent broker survey, 15% of brokers are actively considering transferring scheme business to another insurer*. But what gets a broker to that point? Is the need for better service and claims handling, or is it growth support and access to decision makers? When a broker decides to make a change to a provider, what considerations should they look for in an insurance partner? More importantly, what should a prospective insurer partner be demonstrating in return?

Here are my top five considerations when you start to look for a potential new insurance partner for your scheme.

Not every insurer works in the schemes space. Schemes have a unique place in the typical insurance distribution model. They are not for everyone. When looking for a partner, you must look to team up with a provider that understands the schemes space. What track record do they have in schemes? Can they demonstrate flexibility and collaboration? Are they focused on developing strong relationships and providing proactive decision-making?

The pandemic has exposed the need for access and communication between brokers and their insurance partner to support scheme customers. The frustration of not being able to speak to a human being, let alone an individual with decision-making abilities, was a regular topic of conversation on my broker panel calls. So when looking for an insurance partner, you should ask - what service standards do they have? Are there defined go-to points for all of your customers’ needs, such as claims and risk management? Does the insurer help and support you through fair value and product governance challenges?

Look for a provider that shows the same passion and enthusiasm you have for your customers. A like-minded approach can help break down barriers. Like-minded people will always work together for the most important person in the equation: The customer.

What can the provider show you in terms of awards for outstanding service? Do they have a reputation for industry-qualified and motivated staff? What examples can they show where they have added real value to a scheme? What support has been provided to help a broker grow their scheme?

This remains a fundamental for brokers. The peace of mind brought by working with a robust provider is priceless. Ensure you have the latest AM Best and S&P ratings, highlighting strong and excellent ratings. Eliminate any concerns you may have as to the short-term outlook; many insurers still hold. Look to partner with long-term strategic plans, a solid growth agenda, and a track record in real investment in its people, broker partners, customers, and society at large.

As a pioneer insurer of schemes, we’ve learnt a huge amount about what makes a scheme partnership a successful one. We are learning and adapting all the time in a market that is rapidly changing in terms of buying habits and technological advancements. It’s essential, therefore, that you look for an insurer that is in it for the long term. 

Ecclesiastical has achieved 20% growth in our Schemes DA unit in 2022, and 34% is the targeted growth in 2023. This is a great reflection of what we’ve achieved and reinforces our ambition to double the size of our business and for our owner Benefact Group to have donated £250m to charitable causes by 2026.

As always, there is never one clear fundamental reason for change. I feel strongly that these five considerations are key to deciding which insurer to partner with. After all, it’s all about making the best decision for your customers.

*Scheme’s Study March 2022 with 171 brokers.