Small Fleet - Target Market Statement

What is this product?

Small Fleet is a commercial lines SME product designed to provide insurance protection for motor vehicles used in connection with the customer’s business.

What customer need is met by this product?

  • This product meets the requirements of the Road Traffic Act (1988)
  • This product provides protection for loss or damage to motor vehicles and:
    • Increased limits in respect of third-party property damage
    • Protection for loss or damage to the customer’s motor car
    • Uninsured loss recovery

Who is the product designed for?

Commercial entities based in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, or the Isle of Man who own or lease vehicles that operate within these territories for their business.

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 Kingdom of Great Britain and Northern Ireland, the Channel Islands, or the Isle of Man looking to insure vehicles based outside of these territories
  • 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
  • Commercial customers who do not own or lease vehicles for their business
  • 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 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. This product does not meet the needs of:

  • Customers whose vehicles travel outside of the European Union, Andorra, Serbia, Bosnia-Herzegovina, Iceland, Norway, or Switzerland
  • Customers who wish to insure solely 1 vehicle, or more than 20 vehicles
  • Customers whose vehicles are used for hire and reward
  • Customers wishing to insure their personal vehicles or employee’s vehicles (excluding director-owned vehicles as part of a larger fleet)
  • Sole traders
  • Customers whose fleet drivers do not hold a valid driving licence
  • Customers who do not have cars or light commercial vehicles in their fleet

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