Spotlight 2012

Equity Red Star is a people business. We genuinely believe our unrivalled specialists make us stand out from the crowd.

We have experts in every area of motor business and our structure reflects these specialities. Each team focuses on their specialist area boasting unmatched expertise and unsurpassed passion for service. The result is utter dedication and enthusiasm within each and every team.

We cover a vast array of motor products, including standard private car; van; taxi; coach; minibus; haulage-light and HGV; fleets up to 5 vehicles or over 5,000; hazardous and non-hazardous goods; classic cars; kit cars; non-standard, modified and bespoke private car and commercial vehicle risks; couriers; showmen; tractors; horseboxes; agricultural machinery; modern and classic motorcycles; scooters; high performance bikes; and finally, but not least, motor breakdown.

We can support these motor risks with a range of household contracts including bedroom-rated and mid-net-worth as a well as a suite of products from Equity’s Accident and Health department such as group and individual Personal Accident.

Our product list is extensive, but it is not our products that make us who we are. It is our people who bring these products to life with their passion and knowledge.

Issue No. 13 SPRING 2012

What makes Equity Red Star special?

SpotlightThe Equity Red Star Magazinewww.equityredstar.co.uk

www.equityredstar.co.uk

Mark BaconActive Underwriter

ContentsNew product focus

05 Fleet and mini-fleet policiesSME Protect mini-fleet product plus a new and revised Fleetsure policy.

06 Classic carUnparalleled peace of mind for classic car owners.

07 Home and health productsNew bedroom-rated and mid-net worth products.

08 EquitrackRisk management to enhance vehicle and driver safety.

09 Top Gear Partnership Programme

CONTACT USMotor Fleet0207 265 6715

[email protected]

Minibus0845 600 [email protected]

Haulage0845 600 [email protected]

Vans 0845 600 3891motorcycle&[email protected]

Agriculture0845 602 [email protected]

Motorcycle 0845 602 5803motorcycle&[email protected]

Private car0845 602 [email protected]

Taxi 0845 600 [email protected]

Household 0845 603 [email protected]

Motor Breakdown0845 603 [email protected]

Accident & Health 0845 603 [email protected]

Bespoke Car & Van 0845 600 [email protected]

Coaches 0845 600 [email protected]

Agency0845 603 [email protected]

Commercial Motor0845 600 [email protected]

Welcome to our first edition of Spotlight for 2012.

I would like to personally thank you for your contribution and support. We firmly believe that our relationship with our brokers is crucial to our success and that we are an insurer that can materially contribute to the success of our partners. These are exciting times at Equity Red Star, as we have made substantial progress and have a new series of initiatives on the horizon.

A key priority for us is to develop our relationship with quality brokers who share our vision and business objectives. We are committed to strengthening our broker partnerships and our Top Gear Partnership Programme will allow us to do just this. You can read more about the programme inside Spotlight.

Our passion for all things motoring, combined with our rich heritage in motor underwriting in the UK, makes us the insurer of choice for individual and commercial customers who have specialised motor vehicle insurance needs, alongside a suite of complimentary products.

We are continuously enhancing our broad product portfolio and are delighted to announce Equitrack, Private Car, Classic Car and our My Home suite with new Fleet and Mini-Fleet products coming soon.

Our broker partners are at the centre of our business development activities and I am sure you’ll enjoy reading about these initiatives in more detail.

I want to thank you once again for your hard work and loyalty to Equity Red Star.

Mark BaconActive Underwriter

Update from Active Underwriter

01

Feature

10 Underwriting and claims fraudIntegrated fraud management solutions across all aspects of our underwriting, broking and claims businesses.

11 Advances in claimsAccident cards for policyholders.

News

12 Gender reform legislationsImplementation of the Gender Discrimination Directive ruling.

12 Meeting of minds in ManchesterBIBA 2012 conference.

05

07

12

04

Products

New product focusWe have been delivering quality insurance for 60 years, developing our relationships’ with our partners and continually assessing our product portfolio. Our team of expert underwriters work meticulously and diligently to ensure they remain the best in class and continue to meet our brokers’ needs and those of their customers.

We also move with the times while keeping an eye on the future and it is with delight we announce a suite of new products.

Products

Equity is a long standing and leading player in the fleet market. We have experience in all sizes and types of fleet from small family run firms with 5 vehicles to large companies with 2,000 vehicles and covering private cars, small vans, HGV’s, minibuses and coaches. We consider standard and non-standard rating approaches and tailor solutions to meet our clients’ needs. Underpinning our policies is a flexible claims service designed to support our fleet operators.

New targeted policyTo build on our existing fleet products we are now launching SME Protect.

SME Protect is a mini-fleet product specially designed to cover mini-fleets of 2 to 10 vehicles. SME Protect has its own dedicated policy wording and rating and is aimed at the small business (SME) market. It is estimated that in the UK there are approximately 4 million businesses that are classified within this category. This constitutes over 99% of all businesses and is a sector that has been growing during recent years.

New updated productWe have re-launched our existing product in the fleet market with a new and revised Fleetsure policy.

Easier to use and more streamlined cover that was previously added within endorsements is now included within the policy. This means better documentation making it easier for customers to see what is covered.

The policy also includes additional and clearer advice on how to make a claim. This is designed to encourage quicker reporting of incidents enabling Equity to handle claims more efficiently and effectively.

Features and benefits include:

Cover up to £20m for Third Party Property Damage on cars and £5m on all other vehicles

New for old cover on cars and vans Cover for loss of keys and replacement locks Medical expenses £500 Personal belongings £250 Manslaughter defence costs £1,000,000 Driver personal accident benefits £10,000

Fleet supportOur fleet specialists operate from 6 regional offices and are able to meet the requirements of national or local brokers for fleet business. They are located in Birmingham, Brentwood, Bristol, Glasgow, Leeds, Manchester and London.

To assist with fleet management we have recently launched Equitrack which you can read more about on page 6.

A great overall solutionIf you wish to find out more about how Equity can help you in the fleet market, please speak to your Equity relationship manager or your local regional office.

To access the contact details of your local regional office and relationship managers visit:

www.equityredstar.co.uk

05

New Fleet and Mini-Fleet policies launched

There is no doubt that classic car owners cherish their vehicles. With over 20 years experience in this niche market, our specialist underwriters are just as passionate about their skills to protect these treasured assets.

We have developed a new product that provides unparalleled peace of mind to classic car owners and is sympathetic to their unique requirements. If a customer owns a Jensen Interceptor or an MG, we understand that they don’t want to refer it to just any garage for repairs. Naturally, they want to choose the best quality care for their treasured vehicle, so we let our classic car customers nominate which garage they want to undertake any work. This is just one example of our distinctive benefits.

Our specialist team is on hand to provide the widest solution in the market, at competitive rates, no matter the nature of the risk.

Equity Red Star has both a passion for and an understanding of this market, coupled with a breadth and depth of experience. A winning-combination for any classic car owner.

Features and benefits include:

System calculated premium, with bespoke consideration from our specialist team

Coverage highlights:

Cherished plate cover up to £10,000 Multi-vehicle coverage Foreign use allowance up to 90 days Breakdown cover that gives the policyholder the choice to nominate their preferred garage to make repairs Salvage retention option to client following total loss Loss of keys and lock replacement £300 Child seat cover £100 Personal belongings £150

Our Classic Car product is currently available via referral to the Bespoke team, and in the coming months will be accessible via all major software house platforms.

For more information contact:Tel: 0845 600 3890Email: [email protected]: www.equityredstar.co.uk

Classic Car

06

Products

07

Home and Health Products

Supporting our range of motor products, we are equally proud of our home products and are thrilled to announce important developments in this market.

My Home Earlier this month, we launched My Home, our new bedroom-rated household product that will be available on all main software house platforms and transacted by full cycle EDI.

My Home replaces Equity Red Star’s current bedroom-rated product, Coral, and offers a number of important cover enhancements.

Features and benefits include:

Automatic cover up to £500,000 when buildings selected Automatic cover up to £60,000 when contents selected Generous cover limits for high-risk items included within

contents with single article limit of £2,500 Trace and Access Cover included within buildings up to

£5,000 Business Equipment included up to £5,000 World-wide Money and Credit Cards Cover included within

contents up to £500 Unspecified All Risks Cover available with a single article

limit of £2,500 and Specified Cover available for items which exceed this amount

Downloaded Electronic Information Cover up to £500 within contents

No Claims Discount available up to 25%•

My Home EliteOur mid-net-worth product is due to be re-launched on 1 August 2012 as My Home Elite and replaces our existing Gold and Silver products. It will be available on all main software house platforms and transacted by full cycle EDI.

My Home Elite provides a more comprehensive cover for building and contents.

Features and benefits include:

www.equityredstar.co.uk

Products

Sum insured product catering for Buildings up to £1M and Contents up to £180,000

Home emergency cover up to £500 Loss metered oil or water up to £2,500 Trace and Access up to £7,500 Disability Modifications up to £10,000 Accidental Damage to buildings included as

standard

Business Equipment up to £10,000 Contents in Garden up to £5,000 Garden cover up to £2,500 Students personal belongings up to £5,000 Optional All risks cover for Personal Belongings and

High Risk Items Optional cover for Family Legal Protection No claims discount up to 25%

For more information contact:Tel: 0845 603 1686Email: [email protected]: www.equityredstar.co.uk

On track with EquitrackRisk management is at the core of our business. Our experienced and focused approach to risk helps us lead the way in our specialist markets.

Equitrack uses in-vehicle technology from leading suppliers to enhance vehicle and driver safety whilst helping vehicle operators reduce their running costs. The proposition is based on innovative in-vehicle telematics technology which combines vehicle management and driver performance reporting capabilities. We have partnered with TomTom, Trimble and Roadhawk, to offer a combination of navigation, in-vehicle information and video camera tool solutions. Available to operators across sectors including motor fleet, bus, coach, taxi, minibus and commercial vehicles, Equitrack provides the data and insight necessary to improve safety and increase productivity.

Driven by benefits Equitrack is a flexible solution from a panel of suppliers, so it can be tailored to suit unique customer requirements. Functionality includes location tracking, driver behaviour reporting, online driver scoring and in-vehicle alerts to flag excessive braking and cornering.

Increased awareness leads to safer driving, improved fuel efficiency and ultimately reduces exposure to vehicle crashes and damage.

This means that Equity Red Star can use the Equitrack videos and telematics data in our claims management process to defend against fraudulent or exaggerated claims. It also allows our claims team to make liability decisions quickly and accurately.

Policyholders who choose Equitrack will be recognised as a better insurance risk and can benefit from a lower premium at inception or upon renewal. In addition, we have negotiated exclusive concessions on Equitrack’s in-vehicle systems that are passed on in full to the vehicle operator.

The process to access this technology is very simple. Once a client expresses an interest, we advise the broker on the installation process and its cost. The chosen supplier will then take care of all the customer’s needs, creating a bespoke solution and arranging implementation, keeping the broker and policyholder informed at all times.

Positive feedbackThe feedback from our brokers so far has been excellent. Helping clients to reduce collisions and contain insurance and operating costs enables brokers to demonstrate huge value. Equitrack also helps customers meet their duty of care requirements under the Corporate Manslaughter Act 2007, so clients are secure and confident with the product and brokers’ retention levels are improved.

For more information contact:Tel: 0845 603 1883Email: [email protected]: www.equityredstar.co.uk

08

Products

Provides real-time and historical vehicle tracking

Helps modify driver behaviour

Reduces operating costs through vehicle and driver management Strengthens compliance

Increases vehicle and driver productivity

Broker loyalty programme

09

Our success is directly dependent on the success of our brokers, and Equity Red Star is constantly striving to deliver value to our partners. We are delighted to announce the launch of our new broker loyalty programme: Equity Red Star’s Top Gear Partnership Programme.

Win-win An initiative in collaboration with our broker relationship managers, underwriters, operations and claims personnel. This programme is designed to help us build relationships with broker partners that share our strategic goals.

The aim is to provide our brokers with clarity and expertise about how we can effectively work together and to recognise and reward high levels of performance. We want to ensure that customers with specialist insurance needs come to our broker partners first, and, in turn, choose to insure with Equity.

Structured for successWe’ve restructured our business to ensure that not only are the basics right, but also that the more challenging aspects of our operations and service delivery are fine-tuned. The Top Gear Partnership Programme is the next step in this process to ensure we move robustly forward to achieve profitable growth.

There are three tiers to the programme: Prestige, Classic and Premium – each one reflecting the nature of the broker’s relationship with Equity.

Acknowledges a high level of business activity achieved with Equity Red Star. Brokers within this category are likely to be larger brokers that have multiple products with us. Prestige brokers are entitled to a full suite of enhanced benefits based upon profitability.

Classic brokers are likely to be predominately specialists or working on a single product with us. They will also have access to a suite of benefits to encourage mutual business development.

Recognises the important relationship that exists between us and our brokers. It reflects the opportunity that we have to develop these relationships further. The ultimate aim is that Premium brokers can, in the future, access the enhanced benefits and services available to the Prestige and Classic tiers.

Suite of benefitsThe programme offers a suite of benefits and services to our Prestige and Classic partners. Following a strategic planning session with each broker, we will tailor our offering according to their needs and those of their customers. The commitment we make to our brokers at this stage is fundamental to our ongoing relationship, as is the monitoring process to ensure that we deliver on our promises.

If you are not already part of the programme and want to find out more, speak to your Equity Red Star relationship manager or contact Agency on Tel: 0845 603 1883 | Email: [email protected] | Web: www.equityredstar..co.uk

Top Gear Partnership Programme for our top-tier brokers

PRESTIGE

PREMIUM

CLASSIC

10

According to figures published by the Association of British Insurers, the estimated cost of fraud to every honest policyholder is an additional £44 to each premium they pay. Fraud costs the insurance industry an estimated £2.1 billion per year.

These figures are unacceptable, and we intend to play our part in putting this right.

In September 2011, Steve Jackson was appointed as Head of Fraud. He is taking charge of embedding integrated fraud management solutions across all aspects of our underwriting and claims businesses.

With 22 years experience as a police officer (including counter-fraud experience) and 12 subsequent years in the insurance industry, Steve is perfectly placed to ensure we make the insurance industry a fairer place for honest policyholders.

We intend to drive down the impact of insurance fraud to create a more competitive marketplace for the honest consumer.

Traditionally, insurers have sought to find erroneous claims, but have been restrained about the recovery of costs. We have implemented new systems and analytics so we ask the right questions, gather effective evidence and understand fraudulent customers.

Taking a stance on underwriting and claims fraud

“By creating a climate that is tough on fraudsters, we make it much harder and therefore, less appealing, for any would-be cheat” says Steve. “Our approach will be to ensure that a combination of the right people and the right modern technology achieves the right outcomes for everyone.”

Steve Jackson, Head of Fraud

Feature

11

Stamping out fraud

1. The team We have appointed experienced and effective underwriting and claims teams in our Brentwood and Swansea offices that have the skills necessary to support our staff and brokers in fraud detection.

2. Training We have improved our fraud-awareness training for all staff. It is now becoming more role-specific to focus on increasing everyone’s ability to detect fraud at all stages of the transaction.

3. Technology Technology that detects potential fraudulent activity has been implemented and it is proposed to extend to the point of sale. This means we can eliminate potential fraudulent policyholders and subsequently avoid the cost of detecting and handling their claim in the future.

4. Supply network We are working very closely with specialist suppliers who have the expertise and resources to support our in-house investigation teams.

5. Broker supportOur brokers play a pivotal role in detecting fraud at the point of sale. We are investing significant resources into sharing best practice with brokers so all parties can detect the revealing signs. A combined effort is essential to stamping out fraud.

6. Industry collaborationFraud is not something that we can combat single-handedly. It is essential that we work together with other insurers and suppliers on this issue. We are doing all we can to promote inter-company cooperation and are actively supporting IFED (City of London Police Insurance Fraud Enforcement Department), the Insurance Fraud Bureau and exchange claims via the Claims and Underwriting Exchange database.

News

Advances in claimsEquity’s accident cards for the policyholder and third party will soon be included in the policy documents, which will be invaluable in the event of a collision.

The new process will allow us to collect all relevant information, protect against fraudulent and exaggerated claims and ultimately deliver an improved customer experience and service.

We will work with our broker partners to help educate their customers on the use of this new service. Prompt reporting offers significant benefits to all parties, and permits us to provide immediate assistance to the policyholder and manage third-party non-fault claims.

This delivers clear benefits for our brokers as it will increase the profitability of their account and reduce the claims/loss ratio – a win-win for all parties involved.

www.equityredstar.co.uk

12

Recent changes in gender reform legislationFollowing the announcement in March 2011 regarding the removal of Gender as a rating factor throughout the insurance market, Equity Red Star has ensured that it understands the legislation and any interpretation. Where interpretation is required we have worked through Lloyd’s and industry bodies to make sure our interpretation is on par with the insurance industry.

The primary elements of the legislation are as follows:

Removal of all rating and underwriting that provide differential based on gender

Removal of gender specific terms and coverage benefits from policy wordings

The main areas of interpretation surround two definitions:

’Indirect discrimination’ and; ’New contract’

Indirect discrimination is defined as any benefit, coverage, rating and/or underwriting term that is available to one gender and not another.

New contract is the commencement or renewal of any annually renewable insurance contract that commences on or after 21 December 2012.

A team, including underwriting, legal, compliance and pricing, have assessed all the requirements and have plans in place to ensure that we are compliant and in the best position to ensure it is legally and competitively prepared for the start of the gender directive.

This has included reviewing:

Underwriting rules Policy coverage Marketing Pricing structures and rates

The implementation of the Gender Discrimination Directive ruling has facilitated our move towards utilising a more sophisticated and innovative pricing model.

Meeting of Minds in ManchesterBIBA 2012

We’re looking forward to this year’s BIBA conference with enthusiasm and optimism. The UK’s largest insurance marketplace, it provides the best forum in which to catch up with our valued, supporting brokers.

Our team of underwriters and relationship managers with representatives from each of our underwriting classes will be available throughout the conference. We are keen to talk to brokers about how our clear, focused direction will bring huge benefits to you and your customers. We know that our brokers appreciate having access to such expertise because we don’t just offer it at conferences such as BIBA, we offer it all year round.

Our confidence for the future is attributed to the ongoing commitment and performance of our brokers. We look forward to celebrating this together on the 16/17 May. Brokers, old friends, colleagues and new contacts will find us on Stand 41.

News

www.equityredstar.co.uk

Administered by Equity Red Star Services Limited an appointed representative of Equity Syndicate Management Limited which is authorised and regulated by the Financial Services Authority. Equity Red Star Services Limited Registered office: Library House, New Road, Brentwood, Essex CM14 4GD. Registered in England No: 2661753. Companies of Equity Insurance Group Limited.