Service Funds – Competition Benefits the Customer

We don’t need to tell you that Service Funds Insurance is one of the most fundamental insurances for the military community. It is also a requirement to insure under Queen’s Regulations and the responsibility of the managing trustees to ensure that the best interests of a fund is upheld.

It’s also a sector of military insurance that is probably the most complex. Too many times over the last few years, an existing military broker decides to “turns their hand” to offering a Service Funds policy generally with the view it’s like any old other military insurance product.

“If we can sell Kit insurance and Personal Accident insurance, why can’t we do the same with Service Funds?” – Wrong – pick any analogy from “comparing apples and pears, “not in the same ball park” plus many more and you get the picture.

Why have many tried and failed? Well here are a few reasons for starters:

• Insurers are not totally familiar with what they are providing and have no long term support strategy to overcome the lack of instant returns;

• Many competitors do not have an “expert” within the business;

• They see Service Funds as “nice to have” additions to their portfolio rather than building their business around it;

• Price is vital but then so is service – amendments and ease of claim spring to mind;

• White labelling another providers product is not the easy key to success people believe.

It’s no doubt that serious competition in this market is long overdue. Market domination can only lead to one thing when it comes to price levels – they will continue to rise until there is a creditable alternative.

So how much competition is healthy for this sector of military insurance?

Two alternative providers who can demonstrate serious long term ambitions in this market are probably necessary to stimulate healthy competition which can only mean the Client will be the winner. We believe there are four companies now offering service funds insurance.

Why do our long term ambitions stack up?

• Insurer support and insurer rating;
• Insignia’s knowledge of Service Funds and its workings;
• It’s core activity for Insignia – our business is built around it;
• Massive savings have already been achieved for our customers; is your renewal price the best price!!
• Our long-term pricing structure aims to reward loyalty and our intent to look after our customers.

At the end of the day – the customer is paramount – the market needs reinvigoration – new competition is now a viable option for the first time in many a year – there will be only one winner!!