mid-market real estate
TRANSCRIPT
Vantage
Your guide to mid-market
Real Estate
AXA Vantage Real Estate
Contents
AXA Vantage – Our refreshed mid-market proposition . . . . . . . . . . . . . . . . . . . . . . . . 3
Why choose AXA for mid-market Real Estate? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
What trades are we keen to write? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Our enhanced mid-market Real Estate proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
How can our Risk Management proposition enhance the service you offer? . . 9
Claims Excellence and Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Value Added Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Your key Real Estate contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
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What is AXA Vantage?
AXA Vantage Our refreshed mid-market proposition
Branch Network
¡ Specialist mid-market knowledge across a variety of trade sectors.
¡ Unprecedented levels of empowerment to make decisions.
¡ Desire to support mutually beneficial tripartite relationships.
¡ A commitment to having a meaningful dialogue with you within 48 hours of receiving your mid-market enquiry.
We understand that when you place your client’s mid-market business, you need more from your insurer than just a good product at a competitive price.
AXA Vantage is our exciting sector specific proposition for mid-market commercial business between £10k and £100k. Here we outline the key components of our proposition which we believe demonstrate our significant appetite and expertise in mid-market.
Risk Management
¡ 50 in-house business resilience experts.
¡ 12 chartered liability specialist surveyors.
¡ 15 in-house specialists delivering motor fleet surveys.
Claims Excellence
¡ AXA is ranked 1st amongst its peer group of large composite insurers for mid-market claims service quality by Gracechurch Consulting.
¡ Dedicated Claims Relationship Managers.
¡ Trusted external partnerships. ¡ Transparent approach to claims.
Value Added Services
¡ Comprehensive case level support to win and retain business.
¡ Range of technical training events for supporting brokers.
¡ Access to market-leading digital tools and apps.
¡ Support from Ignition (AXA’s in-house marketing agency).
Trading Tools
Our branches are empowered to apply a number of trading tools including:
¡ Exclusives ¡ Net Rating ¡ Low Claims Rebates ¡ Tripartite Service Agreements ¡ Long Term Agreements ¡ Risk Management Fund ¡ Flexible Instalment Plans ¡ Rate Stability Agreements.
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AXA Vantage / Your guide to Mid-Market Real Estate
AXA, ranked the No.1 global insurance brand
by Interbrand from 2009 to 2017
We have proven expertise and experience in mid-market Real Estate.
Why choose AXA for mid-market Real Estate?
According to ABI net premium analysis, AXA became the 2nd largest Commercial Property insurer in the UK in 2013. This demonstrates our knowledge of the Real Estate market and our ability to provide you with the products and services that you and your Real Estate clients demand.
We work closely with a number of recognised organisations and third party suppliers to broaden our knowledge and provide you and your clients with access to the best services and industry experts.
Our aim is to provide support to you and your Real Estate clients by sharing valuable expertise and insight to achieve and maintain a successful partnership.
¡ Winner of ‘Brokers Insurer of the Year’ 2017 at the UK Broker Awards.
¡ Real Estate specific underwriting expertise and knowledge.
¡ A desire to trade, with increased local empowerment to write, trade and provide tailored customer service.
¡ Valuable broker support and tailored Real Estate training available.
Why should you place mid-market Real Estate business with AXA?
¡ Award-winning Claims service delivering award-winning initiatives.
¡ Ranked the largest insurer in the world by gross written premium by global ratings agency AM Best.
¡ AXA was one of the first insurers to achieve Chartered Insurer status from the Chartered Insurance Institute (CII) in 2011.
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AXA Vantage / Your guide to Mid-Market Real Estate
We’re very keen to write more of these trades/processes
Offices
Retail
Unoccupied Offices & Retail
Residential
Manufacturing involving: Wood, Plastics, Metal, Clothing & Textiles, Printing & Publishing
Sprinkler protected risks
We’re interested but need more underwriting information from you
All other Unoccupied risks
Leisure
Warehouses
Manufacturing involving: Chemicals, Food & Drink
Night clubs
Casinos
Purpose built student accommodation
We would decline these trades/processes
Recycling activities
Commercial Laundries
100% Housing Association
Holiday lets
Non purpose built student accommodation
Our core mid-market Real Estate product, Property Investors Protection Plan, accommodates larger Real Estate risks with premiums of £10k and above.
What trades are we keen to write?
Here we give you an insight into our appetite to trade. When assessing risk attractiveness and risk selection, in addition to looking at your clients’ portfolio mix and type, we’ll also consider other factors such as claims experience,construction details, risk management approach and geographical location.
To help you place more mid-market business, we’re being specific about what we want to write and how our decisions can be influenced. We have been really successful at finding solutions for most risks and recognise the benefit of sharing the factors that help us to do this.
Portfolios with a bias towards standard construction will always be favoured by us and our definition is as follows:
For Properties built of brick, stone or concrete and roofed with slates, tiles, metal, concrete, asphalt or sheets or slabs composed entirely of incombustible mineral ingredients and plastic roof lights. We treat buildings constructed of metal panels and composite panels insulated with materials other than polystyrene as standard construction.
That doesn’t mean we will only write standard con-struction risks. We will need more information from you on risks of the following nature:
¡ Multi tenure risks (our preference is toward light-industrial and office-type tenants)
¡ Mill type premises (our preference here is to write those that have been converted into residential)
¡ Modern Methods of Construction ¡ Listed properties
We would decline this risk:
¡ Substantially timber constructionFor portfolios, we will take into account the mix of construction whereas you can expect us to be less keen to write stand-alone risks that fall into the above categories.
For more information on our trading appetite or to discuss Real Estate risks, please contact your local AXA branch.
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AXA Vantage / Your guide to Mid-Market Real EstateAXA Vantage / Your Guide to Mid-Market Real Estate
Our enhanced mid-market Real Estate proposition
Our priority is to understand what you and your clients need. We recognise that each Real Estate client is different and we tailor our approach accordingly.
That’s why we’ve shaped our mid-market Real Estate proposition to use our expertise to provide flexible solutions. This means that you’ll get the right cover at a competitive price, all serviced to a high standard.
¡ Clear and stable underwriting philosophy which is aligned between Underwriters and Risk Control Surveyors.
¡ Significant capacity available to accommodate 100% placements (no need for coinsurance support but we can write on this basis if required).
¡ To customise our offering (where appropriate) to incorporate rate stability agreements, profit share, risk management funds and a provision for tenant challenges.
¡ Flexibility around allocation of tenant premiums.
¡ Clear, warranty and jargon-free policy wording, designed to transfer balance sheet exposure from Real Estate clients to AXA.
¡ We have structured our Automatic Cover (newly acquired properties) limit to provide a first loss limit of £5m irrespective of occupation type – this means that when a new acquisition is notified, your clients have the comfort of knowing they are protected up to this limit in the event you cannot contact us
¡ Similarly, we provide a £5m limit for Inadvertent Omission to Insure to protect you in the event that an asset has been uninsured.
¡ Flexibility to adapt to changing market needs (e.g. legislation and emerging risks).
Underwriting Approach
Policy Wording
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AXA Vantage / Your guide to Mid-Market Real Estate
Our mid-market Real Estate proposition
Our core mid-market Real Estate product, Property Investors Protection Plan, has been designed with your mid-market clients in mind and accommodates larger risks with premiums of £10k and above.
Property Investors Protection Plan
Our Real Estate product is tailored to satisfy the needs of your mid-market clients. We have the ability to underwrite a number of properties and risk types, ranging from pure commercial risks to mixed portfolios and residential risks. Underwriting terms are bespoke to the client needs and can incorporate rate stability agreements and flexible commission rates.
Flats
This product is designed for blocks of flats, whether stand-alone or portfolios. It is average-free and provides All Risks cover as standard and is aimed at Residents Associations and Residential Management Companies.
Landlords
Our eTraded product is designed for Real Estate clients who own small residential, commercial or mixed portfolios of up to 10 properties, with a maximum rebuild Sum Insured of £5m Declared Value for any one property. To give you the flexibility you need, you can amend your commission rates between 0% and 40% to help you compete on price. Variable excesses are also available.
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AXA Vantage / Your guide to Mid-Market Real Estate
Our mid-market Real Estate proposition – product overview
Our Property Investors Protection Plan product is designed with your mid-market clients in mind.
The information below is not comprehensive but provides a flavour of some of the covers, limits and options available as part of our offer for mid-market clients. For further information on our Property Investors Protection Plan product, please contact your local AXA representative or visit axaconnect.co.uk to download a full summary of cover.
Employers’ liability
Employers’ liability limit of indemnity, up to £10m for any one occurrence
Terrorism
Damage caused by terrorism, sums insured shown under the individual section
Rental incomeDenial of access cover, within 5 miles of the premises, 48 hour franchise applies
Loss of attraction cover, up to £250k per premises and in the aggregate
Murder, suicide or disease cover, up to a 25 mile radius of the premises, 3 months indemnity period
Payment of rates cover for unoccupied buildings of up to £25k for any one loss and £50k in the aggregate
Public liabilityProperty owners liability limit of indemnity, up to £2m for any one eventBodily injury as a result of the growth of biological agents in water systems (Legionella) cover, up to £1m for any one period of insuranceEnvironmental clean up cover, up to £1m for any one period of insuranceFinancial loss cover, up to £250k any one period of insurance subject to 10% coinsurance, minimum £2.5k contribution, maximum £10k contributionLibel and slander cover, up to £250k any one period of insurance subject to 10% coinsurance, minimum £1k contributionManslaughter costs cover, up to £1m for any one period of insurance
Terrorism cover, up to £2m for any one period of insurance
Supplementary covers
Automatic cover (newly acquired properties) cover, up to £5m in total for Buildings and Rental income
Capital additions cover, up to £5m in total for Buildings and Rental income
Failure of other insurances cover, up to £5m in total for Buildings and Rental income
Inadvertent omission to insure cover, up to £5m in total for Buildings and Rental income
Multiple insureds cover included as standard
Reduction in freehold or leasehold value following alteration in planning consent cover, up to £500k in total for Buildings and Rental income
Buildings
All Risks cover subject to certain exclusions included as standard
Condition of average waiver included as standard
Day One average cover, up to declared value +35%
Environmental cover, up to £500k for any one building
Eviction of squatters expenses cover, up to £15k for any one loss
Explosion of steam pressure plant cover, to £1m, in excess of £1m provided by an engineering policyFly tipping costs, up to £5k for any one loss and £30k any one period, £1k excess
Illegal cultivation of drugs cover included as standard
Liability under Landlord and Tenants Covenants Act 1995 (Privity of Contract) cover, up to £2m over Buildings and Rental income in total and in aggregate
Loss of investment value cover, up to £500k for any one claim
Value added tax (VAT) cover included as standard
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AXA Vantage / Your guide to Mid-Market Real Estate
How can our Risk Management proposition enhance the service you offer?
Our Risk Management team is highly experienced in all aspects of Real Estate Risk Management.
What we can offer you
Specialist People Specialist Service
You will have the same Business Resilience Manager expert for the duration of your policy which means that we can respond quickly to any process modifications or location changes your business may encounter.
Bespoke specialist services to provide high quality risk solutions, such as electrical inspection, reinstatement valuations and protection of vacant buildings.
50 Business Resilience experts located throughout the UK supporting single, multi-site or European location programmes.
12 chartered liability specialist surveyors with Level 3 food safety qualifications, 90% of the total survey team hold formal Health & Safety qualifications.
3 fully trained and qualified sprinkler engineers that are backed up with an additional 10 team members who can also undertake annual sprinkler testing.
One of the most experienced loss prevention teams of any UK insurer with more than 875 combined years of experience.
We offer advice on areas such as fire, business interruption, weather, security, motor and liability risks.
Our 15 in-house motor fleet specialists make things easy for you by delivering standalone or combined surveys.
Clients can access a multitude of online assessments and training courses as well as a legal helpline where all advice is provided under privilege.
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AXA Vantage / Your guide to Mid-Market Real Estate
Risk Management in action
Unauthorised festive rave case study
On Friday 30 December a VPS Alarm was triggered at approximately 9pm when a group entered the insured property through a fire door. In response to this incident, the following actions occurred which helped protect the property and avoid a large claim:
¡ The police were alerted and a VPS response team was sent to inspect
¡ VPS were on-site 42 minutes later. They encountered a highly organised group setting up equipment for an illegal rave whilst claiming ‘squatters rights’ under Section 6 of Criminal Law Act of 1977
¡ Over 2,500 tickets had been sold for the rave at £25 each and the group had wired their sound equipment into electrical system
¡ VPS installed four guards to monitor the situation throughout the night of 30 December
¡ On New Year’s Eve, VPS managed to coax the organiser from the building enabling the police to make an arrest
¡ VPS stepped up security to eight security guards and revellers arriving for party dispersed peacefully
¡ The guards remained on site until 4 January to ensure the property was fully protected.
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AXA Vantage / Your guide to Mid-Market Real Estate
Risk Management in action
Large escape of water case study
The following case study demonstrates our ability to work with the broker and the client to tackle the market issue of escape of water and to put in place tailored risk management solutions to protect valuable blocks of flats.
¡ The property in question was a modern block of flats in Westminster each having a sale price of in excess of £1,200,000
¡ Two large escape of water claims were submitted, each in excess of £300,000
¡ Deductible of £250,000 to be added to the policy from renewal
¡ AXA’s Risk Management team worked with the broker and the building owner to identify and suggest remedial actions
¡ AXA introduced their specialist partner, LeakSafe Solutions, to design a bespoke escape of water protection system including water cut-off valves and remote warning messages
¡ An automatic solution was agreed with a cost estimate of £1,000 per flat
¡ During the installation process the system was activated on three occasions proving its reliability and worth with no claims intimated
¡ AXA agreed to reduce the deductible on completion of the installation and commissioning works.
AXA Vantage / Your guide to Mid-Market Real Estate
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Services ¡ We give you 24hr/365 days a year access to claims assistance with an easy and flexible notification process.
¡ You will have access to our trusted external (local and international) partnerships including solicitors, loss adjusters and mediation specialists.
¡ By teaming up with Feefo, your customers can publicly post their rating and comments online about the service and experience they received from AXA when making a claim.
¡ Making Claims Clear is our award-winning transparency initiative. We’ve developed a library of documents to help your customers understand what is and isn’t covered by our policies.
Our award-winning Claims serviceOur dedicated Claims Relationship Management team truly understand your clients’ needs in the event of a claim. This is the service you can expect from AXA if one of your Real Estate clients needs to make a claim:
Claims Excellence and Transparency
In 2016, we settled 19% of property claims within 24 hours under our ‘One & Done’ process.
Tools ¡ We’ll supply you with bespoke monthly claims MI, enabling us to analyse performance and trends around an individual client’s claims portfolio.
¡ eServe, our online Claims tracking tool, allows you to see how your customer’s claim is going, as it’s going.
¡ Faster payments pays within 2 hours when a settlement is made directly to our policyholders bank account to reduce inconvenience and enhance customer service.
People ¡ We have an award-winning Large Loss team as well as dedicated Claims Handlers who deal with specialist Real Estate schemes.
¡ Your dedicated Claims Relationship Manager will ensure the smooth-running of the account.
¡ Universally accredited fraud technical experts with recognised qualifications within the insurance and anti-fraud industries.
¡ We have a nationwide network of 36 AXA Claims Inspectors handling 90% of all liability injury claims investigations.
¡ Our Inspectors have, on average, 23 years’ of insurance or legal experience.
In 2016, we dealt with 1,500 high value complex claims with a combined value of £850m.
AXA staff who are handling large loss claims have an average of 22 years’ of insurance experience.
80% of claims handling staff have a CII professional qualification.
2015 Insurance Times Awards Claims Initiative of the Year
2015 National Agile Awards Best Agile Team, eServe Claims team
2015 CII Public Interest Awards Best Campaign in the Public Interest (Marketing or Advertising) category – Claims Transparency
2015 British Insurance Awards Insurer Claims Initiative of the Year
Over 130,000 payments have been processed using Faster Payments.
Over 1,200 brokers have access to our eServe portal.
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AXA Vantage / Your guide to Mid-Market Real Estate
Claims case study: Flood
The landlord requested the tenant representative be used as the main point of contact for the claim given the focus on the tenant’s potential loss of revenue.
At the outset, AXA recognised the importance of getting the cinema reopened as soon as possible to allow it to trade during the peak school holiday period. The usual background financial checks were undertaken quickly and with the assistance of underwriters and Ipswich Branch, policy liability was agreed just eight days after the flood – giving the client peace of mind that he had our full support. A first interim payment of £30,000 was processed at the same time enabling the tenant to pay outstanding staff wages. A further interim payment of £40,000 was made less than a month later allowing the tenant to keep up the momentum of the reinstatement.
In the immediate aftermath, and before liability was agreed, AXA instructed Davis French, a disaster response and damage management consultant, as the specialist drying expert who surveyed and supervised the drying contractors to undertake very early strip out and drying out.
AXA and GAB Robins considered various options to take pragmatic measures and to reduce
business disruption. This included managing the reinstatement by reopening the less affected screens and projectors pending full reinstatement of the whole cinema. With three of the four screens open for business by mid-February, the tenant was just in time to catch the half term peak trade. It was agreed that the reinstatement proceed on the basis of an agreed scope of works prepared by GAB Robins Surveying Services and priced by nominated contractors. This avoided the need to put the work out to tender, saving an estimated two months for the tenant.
On 5 December 2013 at approximately 9.15pm the premises occupied by tenants East Coast Cinemas Ltd as a four screen cinema complex flooded. The flood waters dislodged the folding entrance doors at the front of the cinema and inundated the interior.
AXA Vantage / Your guide to Mid-Market Real Estate
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We’ve introduced a host of additional services for brokers who are actively committed to working with us to grow our mid-market Real Estate book of business. It’s not just brokers who benefit; clients will also have access to a range of valuable services.
Value Added Services
Business Interruption Calculator ¡ Designed to simplify a BI sum insured/limit of indemnity periods.
¡ Can be used by the broker or the client/accountant.
Client Value added services – support for the right risk ¡ Risk bursary – to support agreed risk control improvements or training needs
¡ Rate stability agreements – rewarding the client risk management programme
¡ Preferential instalment plans – to support cash flow planning
¡ Unoccupied buildings/VPS – specialist protection services which can widen cover available and reduce on going third party security costs (average security guard costs £1,500 per week). AXA has an exclusive agreement with VPS meaning clients can protect vacant buildings from as little as £89 per week. The minimum contract period is 1 week whereas standard practice is a minimum of 8 weeks
¡ LeakSafe Solutions – keeps premiums down by reducing claims frequency and severity
¡ British Gas Electrical Inspections – for both legal.
¡ Riskhelp – designed to assist UK businesses to gain a better understanding of their legal responsibilities, common business hazards as well standard market business insurance policy wordings.
Broker value added services – support for the right riskExtensive support will be made available to all brokers to secure the right Real Estate mid-market case:
AXA risk control/broker pre-quote on-site customer review
¡ Prior to the provision of underwriting and trading terms this enables your customer to meet with a local AXA Risk Control Surveyor to better understand our pragmatic approach to risk management. Involving the customer from inception has proven to increase conversion through better pricing and more certainty regarding the suitability of their current risk management programme.
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AXA Vantage / Your guide to Mid-Market Real Estate
Value Added Services
Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.
App Store is a service mark of Apple Inc., registered in the U.S. and other countries.
We’ve developed a new mobile app which offers you personalised news and knowledge at your fingertips. The AXA Vantage app is available to download via the App Store for free.
The Vantage app offers you multiple benefits, including:
¡ Rolling news from a range of UK industry sectors including Real Estate
¡ A ‘My news’ section to personalise your experience and only see the industry news that interests you
¡ The latest insurance trade news
¡ Keep up to date with the latest AXA Vantage developments
¡ Refreshed content every 15 minutes, so you’ll never miss the latest stories
¡ Users can share articles by email, Facebook and Twitter
¡ Favourite interesting articles to read at a time that suits you.
AXA Vantage app
Supporting mid-market brokers will have access to a range of additional benefits designed to develop your business:
¡ Subsidised access to new AXA digital tools such as the award-winning endcustomer.co.uk, which provides brokers with real time desktop access to a range of client data sets to help you profile and win customers
¡ Access to data and profiling services to help validate and enrich your local mid-market pipeline and undertake joint prospecting
¡ Marketing consultancy and execution across the complete range of marketing services, including; lead generation, training, web and social media design and build, video production, creative design services such as brand or email campaigns/print solutions and access to the Ignition CRM bulk email campaign tool
¡ AXA Real Estate specific marketing campaigns.
Supporting mid-market brokers will have access to a range of additional benefits designed to develop your people:
¡ Mid-market Real Estate specific technical, risk management and claims training plus regular market briefings
¡ Local team skills training on topics such as price negotiation, customer segmentation and contact planning
¡ Access to leadership training events such as our popular leadership seminars in Bordeaux, Paris and the UK
¡ Funding support for CII Regional Broker Academy workshops (with top up funding if also Chartered)
¡ Invitations to mid-market specific broker events and seminars with access to the Senior AXA Leadership team.
Grow your people (CII accredited structured learning)
Grow your business (Delivered by Ignition NBS Ltd.)
Download the app today via the App Store. Search “AXA Vantage”
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AXA Vantage / Your guide to Mid-Market Real Estate
Your key Real Estate contacts
Ipswich Branch Toby Points01473 337 [email protected]
London BranchLauren Shaw02032 068 [email protected]
Our branches want to talk to you about AXA Vantage. To discuss specific mid-market Real Estate opportunities, please contact your local branch specialist.
Maidstone BranchStuart Daffin 01622 238 772 [email protected]
Scotland BranchRoss McNicol 01412 454 411 [email protected]
Newcastle BranchSian Mullane07387 252 [email protected]
Leeds BranchPhil Sellars
01133 978 [email protected]
National Trading Centre – Bolton Andrew Chamberlain
01204 815 [email protected]
Manchester BranchVictoria Leonard
01619 582 [email protected]
Birmingham BranchJo Walker
01216 445 [email protected]
Bristol & Cardiff BranchesStuart Maker
01173 734 [email protected]
Reading Branch Suzi Clapshaw01189 580 [email protected]
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AXA Vantage / Your guide to Mid-Market Real Estate
AXA Vantage Real Estate
AXA Insurance UK plc Registered in England and Wales No 78950. Registered Office: 5 Old Broad Street, London EC2N 1AD. A member of the AXA Group of companies. AXA Insurance UK plc is authorised by the Prudential Regulation Authority and regulated by the FinancialConduct Authority and the Prudential Regulation Authority. FCA number 202312. Telephone calls may be monitored and recorded.