Excess of Loss (XOL) - Target Market Statement

What is this product?

This product offers combined or standalone Excess Employers’ Liability, Excess Public and Products Liability and Excess Motor (third-party property damage) Liability cover to businesses of all sizes; from small enterprises through to large organisations with turnovers, typically, up to £300m.

What customer need is met by this product?

  • Protecting businesses against catastrophic or extraordinary large losses which might exceed the limits of their primary liability insurance policy
  • Without XOL insurance, such losses would be uninsured and would have a significant financial impact on or, indeed, threaten the existence of a customer’s business

Who is the product designed for?

  • Commercial entities and exposures based in the United Kingdom, the Channel Islands, or the Isle of Man
  • It is available to a broad range of sectors, including construction & engineering, manufacturing, logistics, wholesale & retail and professional business services

Who is the product not designed to support, or are there any features you should be aware of when offering this product to your customers?

This product is not suitable for:

  • Commercial entities based outside of the United, the Channel Islands, or the Isle of Man
  • Customers subject to any economic, financial, or trade sanctions imposed by the European Union, United Kingdom, or any other prohibition or restriction imposed by law or regulation of the country of which the policy is issued or would otherwise provide cover
  • Customers who have an existing policy in place providing the same coverage and whereby purchase of this product would give dual cover
  • Consumers

Can this product be sold with or without advice?

  • This product can only be sold with advice, in line with FCA regulations
  • This product is supported by a policy summary

How can this product be sold?

This product can be distributed by brokers who trade with us through our regional offices or electronically through Zurich Online or Acturis Open Market.

Are there any eligibility criteria, conditions or exclusions that may impact the outcomes that customers may reasonably expect?

The distributor must always consider whether they have the correct product to meet the customers needs.

  • Commercial entities based outside the UK, Channel Islands and Isle of Man
  • Commercial entities with properties based outside of the UK, Channel Islands, and Isle of Man
  • Insuring predominantly residential properties

Eligibility and risk acceptance criteria will restrict access for certain risks which may be suitable for the product but are outside Zurich's current strategy and / or risk appetite.

How is the value of the product assessed?

  • We assess product value using quantitative and qualitative information, including data from our distributors relating to service and remuneration, as appropriate
  • This product has been approved in line with Zurich’s product governance processes, including consideration of the value of the product. This includes:
    • Cover – whether the level of benefits and relevant exclusions offers value to the customer
    • Utility – whether the product is being used by the customers of the intended target market
    • Zurich service – whether the type and quality of services being provided is reasonable and fair to the customer
  • The outcome of the Fair Value Assessment confirms that this product is considered to provide fair value to customers for a foreseeable period of time. The Fair Value Assessment is valid until 30/11/2026

What are the obligations of our distributors?

  • Manufacturer notification – all intermediaries must review their product distribution at least every 12 months and consider the impact of remuneration against the intended value of their products. Distributors must notify the manufacturer as soon as practically possible if there are any value concerns for which remedial action is required
  • Remuneration – distributors must ensure that any remuneration received for an insurance product does not result in the product ceasing to provide fair value to the customer
  • Provision of information - if so requested, distributors must provide the manufacturer with: (i) information on the distributor’s remuneration in connection with distribution of the insurance product; (ii) information on ancillary products or services that may impact the intended value of the manufacturer’s primary insurance product; and (iii) confirmation that the distribution arrangements are consistent with the obligations of the firm under the FCA Handbook including SYSC 10 (conflicts of interest) and SYSC 19F.2 (IDD remuneration)
  • Price optimisation - if the distributor is a price-setting intermediary, unless there is a reasonable basis, firms should not increase the price of the insurance product based on: (i) policies being subject to auto renewal compared to policies that are not subject to auto renewal; (ii) the customer’s vulnerability or any protected characteristics (unless the firm can rely on them under the Equality Act 2010); and (iii) where customers purchase the policy using retail premium finance