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Broker reveals strategy behind market move

Broker reveals strategy behind market move

Broker reveals strategy behind market move Premium Choice, the multi-line motor broker based in Birmingham, has made a strategic move into the household insurance market with a new brand called Home Choice – and now it has revealed the thought process behind the move in an interview with Insurance Business UK.

“The entrance into the household insurance market with an intermediated strategy is part of a global plan to broaden the appeal of the Premium Choice business to its customer base and to appeal to a wider demographic,” commented Sean Byrne, head of Home Choice. “This will include the addition of leisure and lifestyle product offerings later in the year.

“We launched the Home Choice insurance brand in July 2016 as research into distribution methodology and customer engagement clearly indicated a more innovative approach would deliver a significantly higher return per case and further guarantee greater customer satisfaction.  My core belief is to engage our customers with dedicated and knowledgeable sales underwriters ready and able to advise and reassure during the sales process.”

The company has outlined that the business will target non-standard risks including flood, subsidence and renovations, in addition to standard cover. This niche approach has been the company’s focus in motor lines and now it hopes to successfully bring it into the household space.
“By niche areas I mean a comprehensive approach to our household customers’ demands and needs,” continued Byrne.

“The commoditisation of ‘standard’ household insurance, either direct or by broker brands on the aggregators, in my opinion does not necessarily provide the full range of options and advice that the insurance buying public need. At Home Choice we will market for the growing percentage of home owners whom for whatever reason a “one size fits all” approach simply won’t work. I have developed a comprehensive insurer panel with wide ranging abilities to satisfy the non-standard and niche market.”

The broker market, particularly relating to motor sales, was recently described as “challenging” by AXA’s chief executive of UK and Ireland Amanda Blanc (read our exclusive interview here). However, Byrne believes this is something that can be overcome with the right strategy.

“With over 40 years in personal lines broking I have experienced many periods when the market has been  described as ‘challenging’, and I believe that with the right strategy and distribution the current squeeze on brokers income can be overcome,” he said. “Without question there is room in the market now for a re-alignment in favour of a higher quality of customer engagement which in turn will deliver an acceptable CPA and guaranteed client ownership at renewal with no restrictions on cross-selling opportunities.”

Related stories:
Amanda Blanc: “If you don’t change your business model, you will get eaten.”