What lies ahead?

The New Year is a time for both reflection and planning. 2018 was a challenging year but one where the Covéa Insurance HNW team successfully delivered some real improvements to our products, maintained the excellent service provided to our customers at underwriting and claims stage, and focused on innovation and the future.

The extremes in weather from the Beast from the East in March, coupled with the long, dry summer resulted in a high number of weather related claims. In addition, the hot summer also contributed to an increase in theft claims as a result of more windows and doors left open. The perennial problem that is escape of water claims delivered poor results across the mid & HNW sector with some insurers exiting this class of business or re-underwriting their books. Even though our 2018 results were impacted, we are confident that our approach to both underwriting and pricing will ensure that 2019 will deliver a good result.

Even with Mother Nature affecting us, throughout the year our HNW team achieved some major successes. These included: a refresh of Executive Home incorporating cyber cover; the update of Executive Motor including some new covers and an increase in our risk appetite; the hosting of both Motor and HNW Home Showcases with over 250 brokers attending the events and finally winning the Insurance Times Personal Lines Insurer of the year award (again!). Our Manchester team also excelled themselves in what has been a difficult year having written more business than ever before, with Executive Motor having its best ever performance amongst our Scottish brokers!

Throughout 2019 we want to continue to focus our efforts on differentiating ourselves in terms of delivering market leading products, providing personalised services that exceed expectations and having close working relationships with our partners. Moving forward the team will be looking at finding a new solution for buildings undergoing works; improving how we work with vulnerable customers to ensure that we are providing the right advice and service; reviewing our travel cover; and creating additional innovative ideas, as well as the usual product reviews.

With the deadline for Brexit on the horizon, 2019 looks like it could be a year of great uncertainty. Predictions have been made including possible inflation, a slowdown in the economy, and the fact that this winter will trump the Beast from the East and be the coldest ever, therefore impacting our business and winter claims volumes once again.

Currently there is uncertainty over the outcome of the super complaint around pricing, the issue of dual pricing is certainly high profile and an area which the industry needs to address. The HNW team continue to review our approach to pricing to ensure that we have a sustainable approach to deliver a long-term return but importantly one which is fair and does not disadvantage any customers. We are pleased that our initial analysis is very positive.

2019 will be a year like no other and our HNW team are poised to respond to the challenges and uncertainty and look forward to working with you and your teams.

In the meantime, thank you in advance for your support throughout the year.

Kind Regards,

Sara Simmons

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