Office and Surgery - Target Market Statement

What is this product?

Office & Surgery is a commercial lines SME product designed to provide contents, public and product liability and employers’ liability as standard cover, as well as a range of optional extra covers, for business with up to 10 properties at new business or 15 properties at MTA or renewals, and with a turnover of less than £7,500,000.

What customer need is met by this product?

This product is designed to protect against financial losses arising from specific insurable events that that require the listed compulsory covers as a minimum.

Who is the product designed for?

Customers, and any policy stakeholders, domiciled in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands or Isle of Man, who run a business from up to 10 commercial premises and who require protection offered by the compulsory and optional covers available.

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:

  • Consumers
  • Customers who are not based in the United Kingdom, the Channel Islands, or the Isle of Man
  • Customers with unspent criminal conviction(s) or an adverse financial history
  • Customers with a turnover of more than £7.5m
  • Customers looking to insure offices and employees engaged in manual work
  • Customers looking to insure properties that are Grade 1 or 2* listed in England or Wales, Grade A listed in Scotland, or Grade A listed in Northern Ireland
  • Customers that have an existing policy in place providing the same cover and whereby purchasing this product would give dual cover
  • Customers subject to any economic, financial, or trade sanctions imposed by the European Union or 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

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 via 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 customer’s needs
  • Policies for this product are individually underwritten so indemnity limits, exclusions, and excesses that apply will depend upon the risk insured and will be stated in the policy quote and policy schedule
  • Eligibility and risk acceptance criteria will restrict access for certain risks which may be suitable for this product but are outside of Zurich’s current strategy and/or risk appetite

How is the value of the product assessed?

  • The distributor must always consider whether they have the correct product to meet the customer’s needs
  • Policies for this product are individually underwritten so indemnity limits, exclusions, and excesses that apply will depend upon the risk insured and will be stated in the policy quote and policy schedule
  • Eligibility and risk acceptance criteria will restrict access for certain risks which may be suitable for this product but are outside of Zurich’s current strategy and / or risk appetite

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