Our approach to product governance
We are committed to delivering exceptional service for our clients and providing quality products which deliver good outcomes and fair value.
We believe one of the best ways to achieve this is by building long-term relationships with our broker partners.
Our highly professional and experienced team here at Yutree Insurance Ltd have in-depth knowledge of our products helping ensure that together, we can provide the best possible outcomes for our clients and policy stakeholders.
This includes ensuring that our products are suitable for the needs of our clients and policy stakeholders while providing fair value in terms of the benefits received under the policy in relation to the premium paid, and remuneration within the distribution chain. We therefore comply fully with the PROD 4 requirements.
PROD 4 status
Under PROD 4.2, we are considered to be a distributor for our policies, with the exception of those listed below, where we are a Co-Manufacturer:
- NPA (property)
- Hiscox (CAR)
- Chaucer (Liability)
For products where we are a co-manufacturer, the insurers have confirmed that they retain responsibility for regulatory reporting to the FCA.
In accordance with PROD 4.3, as a distributor, we have reviewed each of the products we provide with consideration to both suitability and value.
Product Value Assessments
Product governance
Our Product Governance Assessments are undertaken on an annual basis and include information drawn from:
- Information provided by the manufacturer in respect of governance, value, target markets and product testing, claims information, loss ratios and premium adequacy
- Our internal assessment of our customers’ needs, our own remuneration and remuneration within the distribution chain and our overall distribution strategy
- Our broker partners as part of our remuneration review of the distribution chain
- Benchmarking against other brokers to understand how our products and services compare to those being offered by other commercial insurance providers, to assess our competitive positioning
- Claims management services to ensure that we are able to handle claims efficiently and fairly for our clients, to deliver transparent communications and timely and appropriate compensation for their losses
- Our extensive experience and expertise in commercial insurance and the products we provide, and understanding how we can respond to the needs of clients and policy stakeholder.
Target market
As required by PROD 4.3.2, we have arrangements in place which allow us to understand:
- the characteristics of each insurance product
- the identified target market for each insurance product
- the suitability of the product and whether it will meet the demands and the needs of the target market
Distribution
We keep our distribution strategy under review to ensure that we can effectively identify the value the insurance product is intended to provide to the customer and the impact that our distribution arrangements, including remuneration, have on the overall value of the products for the customer.
We are satisfied that our distribution arrangements allow us to:
- to prevent and mitigate customer detriment
- effectively manage conflicts of interest
- ensure that the objectives, interests and characteristics of our customers are taken into account
- understand remuneration within the distribution chain and assess whether it affects the value being received by clients and policy stakeholders
Fair value assessment
When considering fair value, we have given consideration to the following:
Core product
The relationship between the price paid for the product by the customer in relation to the benefits they can reasonably expect to receive from the product. We believe that a product will be deemed as offering fair value, where the amount paid for the product is reasonable, relative to the benefits of the product.
Add-on products
We only offer add-on products where they are suitable for the needs of the clients and the client does not already have the same cover in force elsewhere. We do not provide retail premium finance. However, we recognise that it may form part of a package offered to the client by our broking partners, and therefore where this is the case, their remuneration is taken into account as part of our fair value considerations.
Remuneration within the distribution chain
As part of our ongoing value assessments, we request details of broker remuneration on an annual basis. This will give us useful information. This helps us shape our remuneration and distribution strategy and allows us to monitor and report on value within the distribution chain. This information is reviewed regularly by our Board and will be part of the annual review signed off by the Board as required under the Consumer Duty.
Our value assessments have found that our products and services provide fair value to our clients. We have not identified any products that deliver poor value or outcomes for our clients.
Our products and services are competitively priced and are supported by ethical and strong customer service.
Specialist insurance support
Our team has extensive experience supporting brokers with complex, quirky or non-standard risks. If you need guidance or can't find the right product here, we're ready to help. Explore our products below, or speak to an underwriter if you would like to chat.
