ZPC extends high net worth wordings and reaffirms growth appetite
02/04/2025
Kevin Morton, head of Zurich Private Clients, has committed to brokers that the business is in the high net worth market for the long-term as he unveiled a raft of policy enhancements in motor and home wordings.
To read the full article from the Insurance Age, click here.
Along with a brand refresh the ZPC leader also laid out a marker for a further push.
“Brokers in this market have had a pretty tough time over the last couple of years with a number of market exits,” Morton told Insurance Age adding ZPC’s move “demonstrates a commitment to this market moving forward”.
ZPC has pushed up certain limits and broadened some of the definitions within the wordings (see below). All the developments automatically came into force for all existing policyholders, renewals and new business on 31 January.
Feedback
Morton detailed the upgrade had been made in response to broker feedback by drawing on expertise from underwriters and claims handlers.
Most of the changes have been increases to inner limits within the policy wordings particularly in light of the inflationary environment in the UK over recent years.
“[It was] not that we were getting close to the existing limits but it felt right and proper in terms of giving clients extra protection,” he set out.
For instance the hire car limit has been enhanced to £7,500 and for policyholders not taking advantage of another vehicle during a claim the excess waiver has been upped to £2,500.
Definitions
In the home policy, definitions for land vehicles have been widened to include electrically assisted pedal cycles which Morton noted “are becoming a lot more prevalent with clients owning them”.
For building works which policyholders do not need to update ZPC on the limit has been raised from £50,000to £200,000, while the new acquisitions cover limit has doubled to £100,000.
“It is making the ease of administrating lives with their insurance policy a bit more straightforward,” Morton observed. “It is trying to make the ease of doing business with us even more straightforward than it already was.”
Brand
Alongside the changes to policy wordings, while the name is unchanged the brand has been refreshed with “a new look and feel”, Morton continued. He listed among the expansion to “broker collateral” there was are vamped proposition guide and one page documents summarising each product.
The insurer’s book is currently balanced 65% in home and 35% in motor.
“I wouldn’t necessarily say the wordings needed to be changed. We were very comfortable that they were doing what they needed to do but we want to grow in both,” Morton added. “This year is about more growth.”
Growth
At the start of last year Morton had confirmed double-digit growth in 2023.
This had been maintained in 2024 he updated, detailing it was double-digit by GWP and single digit by policy count: “That is two years’ running now which is really positive for us. The challenge is to do the same again.”
During the 12 months the number of underwriters ticked up from 45 to approaching 50 with two now based in London to service the South East.
“We are continually on the look out for new people with the right experience to help us,” he said.
“Our strategy is to be consistent with rating. We have a strong, profitable portfolio. Even with these policy enhancements in we believe we can be consistent with what our rating looks like to the market.”
E-trade
Competitor Hiscox has been very vocal about its HNW 606 Acturis e-traded product which it is rolling out to a wider broker base beyond the initial pilot.
ZPC does not e-trade in a quote and bind manner. Morton would “never say never on e-trade” but there are no imminent plans to introduce it.
“The feedback we get from brokers is they love being able to pick up the phone and trade with underwriters,” he summed up. “It is the core of our model.”
Similarly there are no current plans to look at adding new lines, travel cover has been automatically included in ZPC’s home wording since launch in 2002, Morton pointed out.
Technology
That is not to say there will be no developments, particularly on technology. The main thrust at the moment is around ease of documentation flow.
“We are continually looking at ways we can move process-type works away from underwriters and claims handlers so they can spend more time on the phone trading with brokers and out in front of brokers,” Morton explained.
To get the messages on enhancements into the market aligned with the appetite to grow the insurer is using LinkedIn, social media, its Zurich for brokers channel and broker meetings to cement existing relationships and build new ones.
“Our strategy is to continue to grow the books and get the message out as wide and far as we possibly can,” Morton stated.
Concluding: “We have had great success over the last few years in terms of growing our portfolio with great support from our broker partners.
“The enhancements to both the policy wordings and brand refresh is a commitment from Zurich to our broker partners that we are here to stay and want to continue to push the boundaries.
“We look forward to continuing to trade in this market space for many years to come.”
HNW enhancements
These include:
Home
- Enhanced replacement cover on jewellery and fine art
- Increased cover for jewellery kept in the bank (from £50,000 to £100,000)
- Increased building works limit (from £50,000 to £200,000)
- Increased green building costs limit (from £5,000 to £25,000)
- Increased new acquisitions cover limit (from £50,000 to £100,000)
- Wider cover under additional living costs
- Increased definitions for covered land vehicles including power-assisted pedal cycles
- Increased limits for incidental business (from £10,000 to £25,000)
Motor
- Increased value limit for replacement vehicles (from £250,000 to £500,000) and limit extended to 24 months for new vehicle replacement
- Increased limits under additional covers including enhanced hire car (from £5,000 to £7,500)
- Excess waiver provision increased (from £1,000 to £2,500)
- Increased limits under the lifestyle protection section
Find out more about Zurich Private Clients here.
