Insurance: Winning votes during the recession

Friday 20th November 2009

By Steve Devine, business development manager at IGI insurance Company and chairman of Protect - the Association of UK Creditor Insurers

At least I had some respite from the Hammers woes last weekend. My Irish roots were twanged a bit with the international soccer and rugby matches. (Nice one Brian - the King of Ireland) Nothing though can explain just what has happened to the English Rugby team. Do you blame the team rugby coaches, or the team coach that takes them to the stadium for the match?
 
I chaired a very good Protect meeting last week. It was lively, interesting and fun. All descriptions not generally associated with creditor insurance in recent times.

On reflection I think we might be starting to look forward with a degree of optimism. (Unlike the English rugby team) Yes we know that it’s going to be tough. The mortgage market is below half the level that it was in 2007. Re-mortgaging, the activity that keeps the lending market going when times get tough is the one factor that alarms me somewhat, as most of it has probably been sucked out of the market during the last three years. There's a general election coming up and the new government (red or blue) will want to get its tough measures in place as soon as it can.

Creditor Insurance is still suffering the death of a 1000 cuts that started in 2005. So why my optimism, you ask? Well the market has been moving away from the credit-linked product sale for some time now.

Standalone, lifestyle, short-term income protection, commitment cover, bill protector cover, they are all out there and available. Lenders who cannot lend are looking at these products and others to cross-sell to their existing customers. They need to generate income and protection products have just benefited from the biggest and most expensive advertising campaign ever - the recession. So, have you seen any green shoots, or opportunities?

Steve Devine is business development manager at IGI insurance Company and chairs Protect - the Association of UK Creditor Insurers
Steve joined IGI this year from Cardif Pinnacle (formerly Pinnacle Insurance) where he spent 15 years, the last seven as the head of group corporate communications. Before that he was head of general insurance with Hambro Countrywide, the estate agency group.
Steve is married with four children and as a long-suffering West Ham fan  he has learned to cope with difficult and extended lean times.