All affected customers will benefit from the most up to date policy wording we currently offer, with most of these having the additional benefit of simpler language.
Where there’s any material difference between the old and new policy coverage, we’ll flag this to you as their insurance advisor through the following link which will contain a Notice to Policyholders and Important Information regarding changes to cover before the migration commences. These documents will also be included with the renewal of each affected policy.
Where any policy currently includes a bespoke Endorsement, we’ll ensure that each Endorsement is redrafted so it’s still appropriate for the replacement policy.
Why do these Legacy Products still exist?
The policy coverage for Legacy Products is generally similar to other products that are currently open for new business and therefore offer similar customer value for money. However, each of them either:
Didn’t capture risk information that would normally be needed to re-issue the policy on the equivalent current policy
Have slightly different coverage in one or more of the extensions of cover that made them more difficult to re-issue onto current products
Are Non-eTraded versions of products that are now only available via eTrade
Were part of a group of customers with a bespoke (‘Freeform’) endorsement that would have required individual re-drafting
Despite these issues, due to the wider change to our systems, it’s now critical that we take action to move these policyholders to the most up to date equivalent product.
Will it be possible to move all customers to an equivalent current product?
Though the majority of customers on our previous Legacy Products can be moved or re-issued onto current products, this may not be the case for a small number of customers. If this isn’t possible for any reason, we commit to contacting you at least 60 days ahead of renewal to inform you that renewal will not be possible.
Where we need more information we’ll work with you to obtain this from the client.
If there’s no suitable alternative contract that the customer is eligible for, we’ll give at least 60 days’ notice of non-renewal and supply any information (such as confirmed claims experiences) that may be required to arrange alternative cover.
How will the renewal premium be impacted?
The pricing of any given risk at renewal will depend on a number of factors including:
Market conditions for the type of cover concerned
The customer’s claims experience
The customer’s current price compared to our current view of the normal price for that risk
We’ll ensure that affected customers will be treated in line with our other customers to ensure that they’re not prejudiced due to the migration from one product to another.
For customers who are being migrated to another ‘Non-eTraded’ product, their renewal premium will be assessed using our normal approach of looking at the claims experience and risk information of the particular client.
For customers migrating to an Auto Rated eTrade product, we’ll compare their expiring premium to our current new business price but if this is different we’ll limit the change at renewal in line with the rules that would apply to the other existing customers.
Will these changes impact the commission on any policies?
Our intention is that commission should remain unaltered when policies are re-issued. If any concerns are identified relating to commission level on any individual policy we’ll discuss this with you as part of our normal renewal negotiations.
How can I find out more about this project or how it may affect my customers or me?
If you want to know more specific details of how this project might impact you or your customers please raise this with your normal AXA Branch contacts.
Will customers be transferred to replacement policies mid-term as a big bang or as and when they are due for renewal?
Customer’s policies won’t be affected until the first renewal date after that specific product type starts to be migrated. Where policies need to be re-issued onto a new policy this will apply from renewal date.
My customer’s policy is subject to a Rate Stability Clause/Long Term Agreement/Low Claims Rebate – how will this be impacted?
Where a customer benefits from any specifically negotiated Commercial or Coverage benefits, the replacement policy will benefit from the same terms and conditions. If any changes are required we’ll discuss this with you as part of the renewal negotiations.
My customer pays by instalments – will they need to fill in a new DDM?
We’ll automatically transfer any existing Instalment Account to the replacement policy so there will be no need for additional actions for you or your customer.
FAQs - Flat specific
Will this impact the level of Excess applicable to my customer's policy?
As part of this exercise, we are bringing existing customers up to the minimum level of excess that we would normally offer for new business, and this includes an increase in the minimum Escape of Water excess to £650 from a previous level of £500. Could we please ask you to check your customers schedule to check the impact on them individually.
Will you be repricing policies as part of this exercise?
No – we have a renewal review process that considers the renewal terms in the light of the customers past claims performance, and this will apply in the same way as for our other customers, but we will not be re-rating policies solely because they are migrating from one contract to another.
On New PPP, Employers’ Liability (EL) is an optional cover that is subject to an extra change – Will this be applied to migrating Blocks of Flats policies?
No - if the customer had Employers’ Liability (EL) cover previously, we would add the same level of cover at a nominal £0.01 charge.
What documents will you issuing for the renewal?
Migrated Flats policy renewals will be issued by e-mails with a Renewal Schedule, new Policy Wording plus 3 additional documents:
Key Changes Summary
Important Notice to Policyholders
Accidental Release of Asbestos Endorsement
FAQs Business Combined or Contractors Combined Specific
My customer’s policy did not include an Asbestos Exclusion on the PL section, but the new one does?
Some long-standing COM policies did not incorporate an exclusion of Liability arising out of Asbestos under the Public liability section. Where this is the case, we have included an endorsement extending the PL section to include £1m of cover for liability arising out of the accidental release of asbestos on a ‘Claims Made’ basis.
Why have you have increased my customer’s Public liability Limit of Indemnity to £2m?
We have identified that a small number of long-standing policies still had a £1m Limit of Indemnity under the Public liability / Public and products liability sections. As part of this exercise, we have made the decision to automatically increase the Limit to £2m with effect from renewal but have not applied any specific additional premium for this change.
Why are AXA not migrating all COM policies to your latest wording?
There are a small number of policies with additional covers (Personal Accident and Specialist Engineering covers) where further development work is required to offer cover under the “Business Combined (CMB) or Contractors Combined (CMC)” contract. Any policy including these covers will be migrated at a later date to be advised.
