Property Owners - Target Market Statement

What is this product?

Property Owners is a commercial lines SME product designed to provide material damage cover for premises, as well as liability cover arising from ownership of them, for properties located in the UK, Channel Islands, and the Isle of Man. The products provide numerous optional extensions of covers.

What customer need is met by this product?

This product is designed to protect against financial losses arising from specific insurable events.

Who is the product designed for?

  • Landlords based in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands or the Isle of Man, looking to insure properties within these territories
  • You are looking to insure up to 30 properties

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 do not reside in, or have a company based in, the United Kingdom of Great Britain and Northern Ireland, the Isle of Man, or the Channel Islands, or the properties to be insured are not located within these territories
  • Customers looking to insure individual flats but not the whole building, excluding Scotland where different legal principles apply

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?

  • 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 31/07/2026

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