Our approach to meeting the Products & Services Outcome and Price & Value Outcome – Information for introducers and consumers of the Product.
This summary document is being provided to you to fulfil our responsibilities under PRIN 2A.3.16 R and PRIN 2A.4.16 R.
We’ve assessed that:
Complexity - The product complexity has been considered. A broad range of cover, that meets the minimum requirements of a finance agreement (with no options) has been designed specifically for its target market; businesses that use asset finance to acquire equipment for use in their business.
Availability of information to customers - Customers are provided with a full policy wording and an IPID along with the application form for the insurance.
Nature of product and risk of detriment - The nature of the product is tailored for this specific group of users. Risk of consumer harm is low.
Insurer experience - The insurer, AXIS Specialty Europe SE, is well known for its property insurance experience.
What is covered - A one-size fits all product covering all the risks required under a finance agreement associated with the use of equipment including but not limited to: IT Equipment, Furniture & Fit Out, Reprographics and Gym and Health Equipment.
What is not covered - Breakdown as this is covered by a manufacturer warranty and including this would be a duplication of cover. Loss.
Restrictions - UK residents excluding Jersey and Isle of Man.
Further information - Policy wording, IPID, https://www.specialty-risks.com/business-asset-protection-insurance/
The target market - Businesses that use asset finance to acquire assets
The potential risks posed to the target market and how are these managed - The potential risks are minimal as the product is designed for businesses that use asset finance to acquire equipment
Who the product is not suitable for - Individuals consumers.
Steps that are taken to ensure the product is only marketed to the target market - Marketing is carried out by a single distributor to customers who have asset finance agreements in place.
Is the product likely to be available to vulnerable customers - No.
Risks vulnerable customers are exposed to and how are these managed - N/A
Has the product specification been completed and approved - Yes
How the product been tested against the specification and the needs of the market - The product has been in development since 2011 and was brought to market in early 2023. The product was developed in conjunction with an asset finance broker who involved a number of other finance industry organisations into their discussions. The product has been tested against the criteria set by the funders in their terms and conditions. We received confirmation from a funder that they accepted the coverage under the product.
Intended distribution channels - Through a combination of funders and finance brokers. See https://www.specialty-risks.com/business-asset-protection-insurance/
How relevant information is provided to distributors - By funders / finance brokers once the asset finance agreement is in place
How pricing is clear to the customer - A single premium is prominently displayed on the application form
How we ensure pricing is fair - Comparison with a direct competitor, analysis of each party's involvement in the product.
Is remuneration throughout the distribution chain proportionate to the work/effort being done for the customer - Yes. The commission is capped by the insurer.
Fees - None
Everyone in the distribution chain is providing value to the end customer - As a new product, there has not been sufficient time to ascertain that the risk premium is sufficient to meet claims payments. The insurer has accepted our proposed premium based upon their experience of similar markets. The scheme agent, Speciality Risks, could not provide the product on a standalone basis. The distributor has incurred significant IT and product development costs which are not expected to be recovered for a number of years.
Product monitoring and product development: The product is reviewed monthly as part of the product governance meeting. Ad-hoc issues are registered through Specialty Risks management system and fed into the product governance meeting. An annual review of the product's performance against its specification is carried out. Underwriting performance is monitored monthly. A quarterly review meeting is held with the insurance company to review product performance
Our assessment concluded that the Product continues to deliver fair value for customers in the target market.
You’ll find information sheets on other Bluestone Products on our website at www.Bluestone.app/consumer-duty
If you have any questions rising form this document please contact our compliance team on email firstname.lastname@example.org or by phone on 01924 248800
For any other enquiries please contact your Dedicated Account Manager