XS target high-premium drivers ...read more
Sunday Business Post - Motoring Section

Insurance firm targets drivers with high premiums ...read more
Sunday Business Post

New car insurance product on market ...read more
Sunday Business Post - Motoring Section

Competition creates lower insurance ...read more
Sunday business Post Motoring Section

Some fortunes favour the brave ...read more
Sunday Independent - Business Supplement

Niche insurer offers low premiums, high excess ...read more
The Sunday Times

Drive Down Cover Prices ...read more
The Sunday World

New policy will save drivers hundreds of euro ...read more
Wexford Echo

Increased excesses can cut cost of car insurance

Higher excess could leave you with a hefty sum to pay if you make a claim.

Insurance policies are designed to protect people from financial hardship when unfortunate events interrupt their lives - or so the theory goes.

Motorists who dare to make claims on their motorist insurance policies could be forgiven for thinking otherwise: often it will be impossible to avoid severe financial penalties following a crash.

Usually these penalties take the form of greatly escalated premiums.

Now stripped of the original no-claims bonus or discount (NCD) of up to 70 per cent on some policies, the new premium could be prohibitive enough to force some younger or less experience drivers off the road.

This week, however, saw the introduction of a new motor insurance company that does it a different way.

Drivers who buy XS Direct's Excess motor policy won't lose their NCD if they make a claim, because the policy doesn't have an NCD in the first place. However, they will have to fork out for a much stiffer policy excess - the part of a claim that drivers must pay themselves - than they would on other policies.

XS Direct charges an excess of €4,000 to male drivers and €2,000 to female customers, meaning they will not be able to claim for amounts lower than these sums.

Excesses on typical motor insurance policies are much more affordable.

FBD - which, alongside Quinn Direct, emerges as a consistently cheaper source of insurance in cost surveys by the Irish Financial Services Regulatory Authority (Ifsra) - charges no excess at all to policyholders aged between 25 and 71 with full licences. (Female drivers who avail of special rates pay €200 in the event of a claim and provisional licence holders pay €125.)

Meanwhile, Quinn Direct is reducing its policy excess from €250 to €190 from June 16th.

At some insurers, higher risk drivers will pay more. For example, at Allianz, the standard excess of €125 rises to €250 for provisional drivers, while at Eagle Star provisional drivers and people aged under 25 pay €315 compared to a standard excess of €190.

Some insurers also charge greater excesses for higher-value or more powerful cars. At Axa, for example, customers driving cars with an engine size of more than 1.5 litre pay €158 in the event of a claim compared to €126 on smaller cars.

Although XS Direct is upfront about the terms and conditions of its policy, burying higher-than-average excesses in the small print is an old trick that insurance companies use to make them appear more competitive than they really are.

For consumers who consider themselves safe drivers, accepting a higher excess can be a good way to keep their annual motor insurance costs down. However, it could prove to be a false economy of they have to make a claim.

At Hibernian Insurance, drivers can choose to reduce their excess to €125 by agreeing to a 2 per cent higher premium. They can also take a 3 per cent discount on their premium by agreeing to an excess of €600.

But this option is not all that popular with drivers. Only a couple of hundred out of Hibernian's customer base of 427,000 have agreed to a higher excess, according to a spokeswoman for the insurer.

The Hibernian spokeswoman points out that the excess on its policies applies only to claims for accidental damage: the insurer will not ask policyholders to pay anything in the event of a third party claim.

However, on XS Direct's policy, customers must pay its substantial excesses on all types of claims.

If a policyholder crashes into the back of another car and the other driver makes a claim against their policy, XS Direct will meet the liability but then seek to recover the hefty excess from the insured person.

The insurer says its higher excesses along with the absence of a no-claims discount allow it to offer lower premiums.

However, XS Direct admits that its product, underwritten by Wrightway Underwriting, is a niche one, appealing to those who are currently paying high premiums of €1,000 or more. This group might include drivers who have recently lost their NCD, younger drivers, people with expensive or high-performance cars and those moving from a company car scheme.

The NCD has been done away with because it has "very little basis in probability", according to XS Direct. So, if customers do have to make a claim, it will set them back up to either€2,000 or €4,000 but their premiums won't skyrocket afterwards.

All motorists should use the statutory 15-day notice period for motor insurance renewals to shop around for alternative cover to their current insurer. Premiums fluctuate, with companies gaining or losing competitiveness from one year to the next.

The merits of ringing around for quotes are even stronger for drivers who might be in a vulnerable position following the loss of their NCD.

Even if XS Direct does manage to save them a few hundred euro a year, they will have to ask themselves whether the savings are worth the risk of having to pay up to €4,000 in the event of a claim.

XS Direct, which plans to introduce a policy, aimed at younger drivers within the next 12 months claims its excesses incentivise policyholders to adopt a more sensible and cautious approach to driving. Arguably, the threat of losing valuable no-claims discounts on other insurance policies does the same thing.

However, at most of the mainstream insurers, motorists can pay extra for no-claims discount protection, meaning that, if they do need to make a claim, they needn't suffer unnecessarily come renewal time.

(c) The Irish Times

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Insurer targets drivers paying high premiums
Irish Times Business Section

Insurer targets drivers paying high premiums

A new company has entered the motor insurance market with a product targeted at young drivers, owners of powerful cars and motorists who have lost their no claims bonus.

XS Direct says it will offer big savings on premiums to motorists with its first product, which is also aimed at drivers who are moving from a company car scheme. However, policyholders will have to take a higher policy "excess" to compensate for the lower premium.
Excess is the initial element of a claim that it is carried by the driver. The excess rate that will apply to male drivers is €4,000 while the rate applying to female drivers is €2,000.

The company argues its approach incentivises policyholders to be more sensible and cautious in their driving because of the higher initial rate of exposure. "Driver behaviour invariably dictates whether they are involved in accidents."

XS Direct said it was specifically targeting its product at drivers who pay annual premiums of more than €1,000. The company will not operate a no-claims discount system, arguing that such schemes have very little basis in probability.

"Rather than having high premiums and offering discounts to customers for not claiming, XS Direct has a flat premium structure, making it more attractive to drivers paying high premiums."

XS Direct said a male driver quoted a renewal premium of €2,000 might secure a premium for €1,400 with it. "If he claims under XS Direct, he must pay the first €4,000 of the claim. If he was to claim under the original policy and lose his 50 percent no claims bonus, he will pay a penalty of €6,000 (additional premiums over the next five years) before he recovers his no-claims bonus."

The management team at XS Direct includes insurance specialist Chris McCann, who was treasury advisor to the General Re insurance group, Stephen Gunning and John Prossor. Marketing consultant John Walsh is also on the team.

XS Direct has appointed up to 30 brokers to sell its product. The underwriting on the policies will be carried out by Wexford firm Wrightway Underwriting. A spokesman was unable to say how much money had been invested by the company's backers.

(c) The Irish Times

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Paying part of your insurance claims
Irish Independent - Motoring Section

Paying part of your insurance claims

High performance car owners and those paying high premiums may find XS Direct useful.

It targets those who have recently lost their no-claims bonus, or those with expensive/high-performance cars, or moving from a company car scheme.

There isn't any No Claims Discount. It uses a flat premium structure where the driver pays the initial element of a claim. That means it can offer lower premiums. Excess is €4,000 for male drivers and €2,000 for female drivers. The driver-pay-excess element can mean big savings.

www.xsdirect.ie 0818 222 888

(c) The Irish Independent

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Insurance goes to the margins
Irish Times Motoring Section

Insurance goes to the margins

Car insurance is a tricky beast. You have to have it, you don't want to pay for it - insurers, having access to a captive audience, love to force the issue.

Perhaps that's why this week the arrival of a new provider into a crowed but pricey market has created a large degree of interest, especially when it is trumpeted as providing low cost cover for those at the margins of the market - either driving high-price, high-performance cars or those whose risk-worthiness with other companies has been compromised by a claim and the loss of a no-claims bonus.

But while the offer obviously has its attractions, there are caveats to the scheme run by the new insurance player XS Direct.

The product on offer from the new company does away with the no-claims bonus system; instead drivers get a cheaper quote in exchange, effectively, for less liability from the insurance company. Whereas in the case of a claim to most companies the insurer will pay out the whole of the value of a claim, XS Direct's product comes with an insurance excess which means that you pay for the first several thousand euro in damage in the event of a claim and they pick up the rest of the tab.

For male drivers that excess is €4,000 and for females the figure halves. So, in the event of a male driver making a claiming of €6,000, XS Direct will only be liable for a €2,000 payout. Hence the low premiums.

While the penalty in the event of a claim may sound prohibitive, the scheme obviously has its attractive points. If you are the owner of an expensive, fast car, the likelihood is that you are being heavily penalised by insurance providers for the privilege of driving such a valuable, high-performance machine. Add in the loss of a no-claims bonus to that cost, and the end result could be a premium which makes the heart stop and the wallet recoil in fear.

However, those owning such vehicles are also likely to be in possession of the funds to take the potential hit of a €4,000 excess in the event of an accident. The question for others, of more moderate means and modest machinery is whether a competitive premium is worth the risk of the excess?

Quoteline Brokers is one of the agencies dealing in the XS product and managing director Leo O'Callaghan admits that the system has its pros and cons. "It's definitely not for everyone," he says. "It is a niche product aimed at one or two very specific areas of the market. The first of those is people who drive expensive, high performance cars. The second is for people who have lost their no claims bonus."

The company cites two examples: a customer with a Porsche Boxter who lost his no-claims bonus and was quoted €3,000 by his regular insurer, only to be quoted half that figure by XS Direct, and a 32-year-old woman with no no-claims bonus, who was quoted €850 as opposed to €1,400 from her previous insurer.

However, the danger exists that in a bid to bypass high costs, drivers on the margins of cover will take on an excess risk they cannot afford. "Customers will have to know what they are getting into." Says O'Callaghan. "They will have to read the fine print. It is up to brokers to inform people of the cover they are getting and it will be no different with the XS product."

O'Callaghan also makes it clear that XS Direct's product is not a panacea for all insurance ills. "They are not quoting young drivers," he notes. "I believe they may do so down the line, but at the moment they are not in that market. It is definitely more aimed at those driving expensive vehicles."

He also downplayed any suggestion that the company could run into trouble from mid-income customer unable to pay the excess in the event of an accident. "I don't think that will impact on the company itself. At the end of the day they will pay out the percentage they are required to and the rest is up to the customer to sort out with a garage."

That, though, may lead to problems with dealerships' faith in customers insured with XS should a scenario develop whereby bills for repair work are left unpaid by cash-strapped customers.

Michael Horan of the Irish Insurance Federation told The Irish Times that ultimately it is up to the consumer to decide on the right product for the circumstances.

"It's now a very competitive market in Ireland and that is a good thing for the consumer as premiums are falling," he says. "And really the only advice we can offer is that people shop around. Not only for the best price but also for the cover that suits them."

"As ever, it is a case of caveat emptor."

(c) The Irish Times

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Drivers could save up to 60% insurance costs
Kildare Nationalist

Drivers could save up to 60% insurance costs

Kildare drivers are being urged to review their current car insurance policies as a result of a recent study carried out by a new motor insurance brand in association with local insurance brokers, Culletons in Athy and Brady Burns Insurance in Newbridge.

The study established that over 20,000 drivers in Kildare could save up to 60% on their motor premiums. According to the brokers: "Drivers in Kildare are paying €78.8million a year in car insurance and of these, more than 11,000 drive cars of 2.0 litre or bigger and almost 16,000 don't have a full no claims bonus. Motoring insurance is changing rapidly and a new car insurance policy launched recently will benefit these high premium drivers, paying €1,000 or more."

The new concept is very simple. Nearly every car insurance policy has an excess, where drivers pay the first part of any claim. The new product from XS Direct just has a higher excess - €4,000 for men and €2,000 for women. This policy does away with no claims bonus and everyone starts with a clean slate. For drivers of high-value cars or those who have lost their no claims bonus, a high excess can offer significant savings. According to Linda Roberts from Culletons in Athy, "The response from clients has been strong, particularly from those who have recently lost their bonuses or who driver high-value cars. Brokers are here to give advice and highlight any possible savings and this is definitely one to check out if you're paying more than €1,000 in car insurance."

The number of drivers in Kildare has increased by 25% since 1998, one of the highest growth rates in the country. In the same period, accident frequency was still relatively high. The expectation among brokers is that road safety measures and the Personal Insures Assessment Board should bring further improvements and the entry of this new company into the market is welcomed, providing competition in a niche in the market where drivers often find it difficult to get an affordable quotation.

Market research highlighted that only one quarter of motorist actually make a claim under their policies following damage to their car, because motorists know that after making a claim, you lose your full no claims bonus and you will be penalised over three times your annual premium before you get back your full no claims bonus. According to Joseph Brady from Brady Burns Insurance in Newbridge "There's little point in paying for insurance cover if you're not actually going to use it. That's why we are particularly interested in a new type of policy which reflects reality and carries a much higher excess. One of our own clients drivers sports convertible and has saved over 40% on her car insurance by using the product. She had a small claim last year and was quoted a best renewal of €1,350. This new product has saved her over 500 this year by covering her for €850.

These policies give the driver more responsibility and this can only have a positive effect on Kildare roads. This approach should insure that the policy holder has an incentive to make a more sensible and cautions approach to driving.

Meanwhile, XS Direct is current assessing the merits of launching a unique youth product and hope to bring this to market within 12 months.

(c) The Kildare Nationalist

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Sligo people spending way too much on car insurance....
Sligo Champion

Sligo people spending way too much on car insurance according to local study

Sligo drivers are being urged to review their current car insurance policies as a result of a recent study carried out by a new motor insurance brand in association with local insurance brokers, McSharry & Foley in SLigo.

The study established that over 8,000 drivers in Sligo could save up to 60% on their motor premiums. According to Donagh McSharry: "Drivers in Sligo are paying €26.6million a year in car insurance and of these, more than 3,000 drive cars of 2.0 litre or bigger and almost 5,000 don't have a full no claims bonus. Motoring insurance is changing rapidly and a new car insurance policy launched recently will benefit these high premium drivers, (€1,000+)."

The new concept is very simple. Nearly every car insurance policy has an excess, where drivers pay the first part of any claim. The new product from XS Direct just has a higher excess - €4,000 for men and €2,000 for women. This policy does away with no claims bonus and everyone starts with a clean slate. For drivers of high-value cars or those who have lost their no claims bonus, a high excess can offer significant savings. Donagh McSharry went on to say that, "The response from clients has been strong, particularly from those who have recently lost their bonuses or who driver high-value cars. Brokers are here to give advice and highlight any possible savings and this is definitely one to check out if you're paying more than €1,000 in car insurance."

The number of drivers in Sligo has increased by 31% since 1998, one of the highest growth rates in the country. In the same period, accident frequency was still relatively high; in 2003, there were 365 accidents reported in Sligo roads. The expectation among brokers is that road safety measures and the Personal Insures Assessment Board should bring further improvements and the entry of this new company into the market is welcomed, providing competition in a niche in the market where drivers often find it difficult to get an affordable quotation - high premium cars or drivers who have lost their full bonus.

One Quarter

Market research highlighted that only one quarter of motorist actually make a claim under their policies following damage to their car, because motorists know that after making a claim, you lose your full no claims bonus and you will be penalised over three times your annual premium before you get back your full no claims bonus.

McSharry & Foley in Sligo say that "There's little point in paying for insurance cover if you're not actually going to use it. That's why we are particularly interested in a new type of policy which reflects reality and carries a much higher excess. One of our own clients drivers sports convertible and has saved over 40% on her car insurance by using the product. She had a small claim last year and was quoted a best renewal of €1,350. This new product has saved her over 500 this year by covering her for €850.
These policies give the driver more responsibility and this can only have a positive effect on Sligo roads. This approach should insure that the policy holder has an incentive to make a more sensible and cautions approach to driving. Driver behaviour invariably dictates whether they are involved in accidents. XS Direct is current assessing the merits of launching a unique youth product and hope to bring this to market within 12 months he said.

(c) The Sligo Champion

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XS target high-premium drivers
Sunday Business Post - Motoring Section

XS target high-premium drivers

A new motor insurance product will provide a low-cost alternative to high-premium motorists in Ireland.

Irish-owned insurance company XS Direct opened for business earlier this month with the launch of its specialist motor insurance product Excess. Aimed at the high-premium end of the Irish motor insurance market, the company claims Excess will provide a low-cost alternative to motorists who are paying premium of €1,000 a year and over.

"Even the most sensible drivers can expect an accident from time to time," said XS Direct managing director Chris McCann.

"So when a premium doubles because if a claim, it isn't a reflection of the probability that a person will make a claim in the future; it is a financial penalty for having made a claim in the past."

"With all the insurance companies operating the same system, they can recover nearly four times your annual premium by the time you get a full no-claim bonus,"

The company's target market includes customers who have lost their no-claims bonuses, motorist with expensive, high-performance cars and people moving out of company schemes.

McCann set up XS Direct in May 2004 with company directors Stephen Gunning, John Prossor and John Walsh.

He succeeded in raising €5 million in private investment funding and bank finance before commencing operations in Dublin earlier this month.

For inspiration, he turned to the business plan adopted by established Irish business Pigsback.com.

According to McCann, XS Direct operates a virtual insurance model, outsourcing underwriting, processing and claims administration requirements. It employs five staff, four of whom are directors.

"Raising money takes longer than you think - as does organising reinsurance - the regulator were fast," he said.

"They were fantastic and produced plenty of demographic information on real clients. The research was precise and that led us to concentrate on a transparent sales model."

According to McCann, motor insurance is essentially a "grudge purchase" with little or no choice involved.

By providing consumers with an unambiguous "see-through" option, he said XS Direct would have a positive affect on motoring trends in Ireland.

"I spent 20 years in financial service, including the bond business and venture capital. You get to see the whole layering of financial risk and how it works."

"Why not let consumers see it too, and let them figure these things out intuitively and realise that, once a product is clear-cut and self-explanatory, there really can be something in it for them."

"Our approach should insure that the policyholder is incentivised to take a more sensible and cautious approach to driving."

"We are not trying to reinvent motor insurance here the actuarial models have been tried tested for more than a century and do work. We are just making small changes to bring the insurance concept back in time to cover actuality," said McCann.

"The policy is inclusive by nature and ensures that drivers have a greater influence in the results of their driving, including prevention, claims cost control and speed of settlement."

"In the US, for example, a consumer can choose to insure for €10,000 worth of cover or €100,000. This does appeal to people. Within the first hour of opening, we had our first customer; it wasn't a marketing gimmick or a coincidence."

According to McCann, the company's policy divides responsibility jointly between the insurance company and the driver, prompting a more sensible approach to driving.

It is, he said, unsuitable for "reckless drivers".

"The concept behind Excess is very simple; it's there in all existing policies, up to €600 with some companies. It means that drivers pay the initial cost of any claim."

"With a higher excess of €4,000 for male and €2,000 for female, XS Direct policyholders know exactly where they stand. Making a claim has no effect on the pricing of renewal."

"Take driver with an annual premium of €2,000; by making a claim and losing their 50 per cent no-claims bonus, they will pay a penalty of €6,000 in additional premiums over the next five years, before they get back their full no-claims bonus.

"If a driver who is being quoted a renewal premium of €1,000 moves over to XS Direct's policy, they reduce their premium to €700."

"If the claim under XS Direct, they must pay the first €4,000 of a claim."

"If they were to claim under the original policy and lose their 50 per cent no-claims bonus, they will pay a penalty of €3,000, in additional premiums over the next five years, before they receive their no-claim bonus."
"However, if they don't make a claim, they benefit from a lower premium with XS Direct."

McCann expects to have between 35 and 40 brokers selling XS Direct by the end of this year.

"I predict that in the first year, we will attract between 5,000 and 7,000 customers, but we will just have to wait and see," he said.

"What I do know is that this product has the potential to do 3 to 5 per cent of the current insurance market and that's the range we're hoping for."

Its first-year turnover, based on 5,000 policies priced at €1,000 each, is expected to be at least €5 million.

McCann said that the company was also looking into the possibility of launching a "unique youth product" in Ireland within the next 12 months.

(c) The Sunday Business Post

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Insurance firm targets drivers with high premiums
Sunday Business Post

Insurance firm targets drivers with high premiums

A group of Irish businessmen have raised €5 million to launch a specialist motor insurance product aimed at the high premium end of the market.

XS direct, led by managing director Chris McCann and directors Stephen Gunning, John Prosser and John Walsh, began operations in Dublin last week with the launch of its motor insurance product Excess.

Excess will enable motorists with high premiums to cut insurance costs by "taking a higher policy excess, similar to what is available for business and commercial users", said McCann.

Its aim is to provide a low-cost alternative to motorists who are paying premiums of over €1,000 a year. Possible customers include drivers who have lost their no-claims bonus, motorists with expensive, high-performance cars and people moving out of company car scheme.

"The no-claims discount has been done away with simply because it has very little basis in probability," said McCann.

"Rather than having high premiums and offering discounts to customers for not claiming, XS Direct has a streamlined premium structure making it more attractive to drivers paying high premiums."

"The initial element of a claim is carried by the driver, which allows us to offer lower premiums."

"At present, the excess is €4,000 for male drives and €2,000 for female drivers," sad McCann.

XS Direct was established in May 2004.

The funding amount subsequently raised included a mix of private investment and bank finance.

McCann said that the company operated a "virtual insurance model", outsourcing underwriting, processing and claims administration requirements. It employs just five staff, four of whom are directors.

Its first-year turnover, based on sales of €5,000 policies priced at €1,000 each, is expected to be €5 million.

McCann said that the company was also looking into the possibility of launching a "unique youth product" on the Irish market within the next 12 months.

(c) The Sunday Business Post

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New car insurance product on market
Sunday Business Post - Motoring Section

New car insurance product on market

The opening up of the car insurance market is bringing in new players, who offer alternatives not employed by traditional insurers.

The latest arrival is XS Direct, offering insurance without the no-claims bonus feature. This is based on its belief that the no-claim bonus system is a poor predictor of future accidents.

Instead of the no-claims bonus system, XS Direct instead charges drivers a higher excess in accident payouts. Male drivers have to pay the first €4,000 of any claim, while female drivers pay €2,000.

In return for this excess, they pay much lower premiums. XS Direct can be purchased through brokers, by Lo-Call 0808-222888 or online at www.xsdirect.ie

(c) The Sunday Business Post

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Competition creates lower insurance
Sunday business Post Motoring Section

Competition creates lower insurance

According to Leo O'Callaghan of independent broker network bestquote.ie, the motor insurance market in Ireland has "bottomed out".

"It is a trying time to roll out a new insurance product," he said. "A lot of companies are homing in on niches, whether that entails concentrating on 'lady policies' or 'older drivers', etc. After that, most insurance companies will continue to go after the mature driver - i.e. over 30, family man, with a mortgage, who drives children around and will not be taking many risks.

"The person that still scares the life out of any insurance company is the 19-year-old male with a provisional licence."

Despite the fact that Ireland has the highest road fatality rate in Europe, the cost of motor insurance is beginning to fall. Last year, the Irish Insurance Federation (IIF) reported that insurance premiums in Ireland had fallen by 10 per cent to €1.7 billion in written policies.

The Irish Financial Services Regulatory Authority (IFSRA) also reported that motorists could save up to €1,700 on motor insurance by shopping around.

According to Carl Rainey of Rainey Gibson Insurance, motor insurance premiums in Ireland have dropped by an average of at least 15 per cent over the past year.

"In general, premiums are down 15 to 20 per cent in the last year and 30 per cent from their past 12 or 15 months ago," Rainey said.

"Insurers have reduced their rates in light of a more competitive environment. Penalty points have also had an impact and the frequency of claims has fallen."

"Insurance is very relative. Yong drivers might search around purely for the cheapest premium, while a more mature driver may be willing to pay a better premium for a better policy so it's hard (for insurers) to tell what the uptake will be like."

Rainey said motorists could get "some great deals" on third party fire and theft for as little as €300. "Finding the client that fits that exact spec, perhaps an older driver in a mini with a full licence and bonus is another story," he said.

"I've been in this business 23 years and premiums are lower now, but accident frequency is creeping up again, so it will start to rise. However, over the next 12 months, I don't envisage a rise of more than 5 per cent."

Paul Kavanagh, managing director of the McCarthy Insurance Group said insurer XS Direct's entry into the Irish market earlier this month was a welcome development.

"They add another option for the motorist who is paying over €1,000 for their annual policy," Kavanagh said.

"Some of the features being offered are unique in Ireland, such as the policyholder paying the first €4,000 (male) or €2,000 (female) of a claim under their policy."

"While this is not for everybody and careful consideration and advice is needed, the fully protected bonus for life feature is a welcome development and something I like myself."

"Up to now various types of 'protected bonus' were on offer and all were different. The best one that we offered was no loss of bonus for any two claims in a three-year period - that's any type, costing any amount. This is a super feature and our clients love it."

"However, motorists are advised o check out exactly what their benefits are from their adviser who is obliged to give them best advice on the range of products in the market."

"If you deal with an insurance company directly you will only be told what they offer and not what may be best for you. I believe this feature will become more common in the better products in 2006."

(c) The Sunday Business Post

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Some fortunes favour the brave
Sunday Independent - Business Supplement

Some fortunes favour the brave
XS Direct motor insurance

Motor insurance is so expensive that the task of keeping it low is one many of us think about every morning.

But for those who have lost their no-claims bonus or likely to drive expensive motors or who find themselves moving out of a company car scheme, the chances of keeping premiums low are remote.

A new brand in the motor insurance market, XS Direct, has been set up to offer a comprehensive policy to high premium drivers and claims to provide significant savings.

The philosophy behind XS Direct is that the traditional system is a penalty on driving history, not a prediction of the future.

Take a driver with an annual premium of €2,000. By making a claim and losing his or her 50 per cent no-claims bonus, the driver pays a penalty of €6,000 (additional premiums over the next five years) before they get back their full no-claims bonus.

The XS Direct promoters claim that making a claim will have no impact on the pricing of policy holders' renewal. If a driver is being quoted a renewal premium of €1,000 or she can move to a XS Direct policy which will reduce the premium to say, €700. If the driver claims under XS Direct, he must pay the first €4,000 of a claim. If he doesn't make a claim, he benefits from a lower premium.

The promoters quote examples of how its customers benefited. It cites a 28-year-old female driving a mini convertible, who has lost her no-claims bonus and was subsequently quoted a best renewal of €1,350. XS Direct covered her for €850. But then she takes her risks.

They cite too a 60-year-old male driving a sports car worth €300,000 with a full no-claims bonus, who was given an XS Direct quote was €3,800, some €2,000 cheaper than the next best quote. Some brokers around the country are offering the service. A listing is available on the website www.xsdirect.ie

The Verdict
Interesting for the brave but not for the nervous.

(c) The Sunday Independent

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Niche insurer offers low premiums, high excess
The Sunday Times

Niche insurer offers low premiums, high excess

Ireland's high rollers could save between 30% and 60% on their car insurance premiums with Excess, a comprehensive insurance product to be launched this week.

XS Direct, a new financial services company, will charge lower premiums but higher excess charges to customers who crash their Porsche or write off their BMW.

The product is aimed at drivers who would be typically paying more than €1,000 in annual premiums. Their premiums will fall but men will pay the first €4,000 of any claim and women the first €2,000.

"This is not a product for everybody by a long shot," said Chris McCann, the managing director of XS Direct. "We have identified niches of interest through market research."

In additional to motorists with expensive or high-performance cars XS Direct is targeting drivers who have recently lost their no-claims bonuses, moved from a company car scheme or returned from overseas.

McCann believes these groups add up to a potential market of 120,000 to 150,000 drivers, although the initial target customer base is substantially smaller. "It may well be the case that to achieve real scale we would have to leave this island," he said.

The product does not have a no-claims bonus. "We have put the no-claims bonus in the rubbish bin," said McCann. "It does not matter if you are involved in an accident costing €5,000 or €150,000, the penalty points will not raise premiums either.

XS Direct has modelled its product on similar policies available to businesses, "We are putting the wholesale concept to the retail level. With the high rate of insurance after September 11, businesses were offered lower premiums by self-insuring to a certain extent. We thought it would be sensible to offer consumers the same chance."

McCann is a brother of the Fyffes chairman Carl McCann but the fruit and vegetable importer has no involvement in the new venture. McCann's partners in XS Direct are Stephen Cunning, a former president of JMH Treasury; John Prosser, a former general manager of the IFSC subsidiary of FBD Holdings and John Walsh, an experienced marketer.

They are also researching a product for younger drivers and investigating the possibility of wrapping car insurance into existing mortgage product.

Excess is available through 15 to 20 brokers around the country and is underwritten by Wrightway, a Wexford-based agency.

(c) The Sunday Times

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Drive Down Cover Prices
The Sunday World

Drive Down Cover Prices

When you buy car insurance, you pay a hefty annual premium to the insurer to take on the risk of repairing damage to your car.

However, once you make a claim, you lose your no claims bonus and end up paying much higher premiums in subsequent years. In this way, you can end up paying for the cost of the repair anyway.

You can reduce your car insurance by deciding to take on more of the risk yourself. This means that if you have an accident you pay more of the cost of repair before the insurance kicks in.

XS Direct is a new insurer which is targeting people who pay big insurance premiums either because they drive expensive cars or because they've lost their no claims bonus.

The idea is that XS Direct will lower the cost of your premium so long as you agree to pay a larger part of any claim than would otherwise be the case with your existing insurer.

Male drivers are being asked to pay the first €4,000 of any claim, while women drivers of XS Direct agree to pay the first €2,000 of the claim cost.

According to Chris McCann, managing director of XS Direct: "Paying the initial part of a claim is factored into most car insurance policies and is up to €600 in some cases. We have higher excess rates, but at least our policy holders know where they stand. Making a claim with us has no effect on the pricing of renewal".

Hikes
McCann argues that the full cost of making a claim under a traditional policy is a lot higher than many people realise. He calculates that if your annual premium is around €700 per annum and you make a claim, the insurer will claw back €2,400 through higher premiums due to the loss of the no claims bonus. If your annual premium is €1,200 the claw back will be €3900 over subsequent years.

McCann says his Excess policies are aimed at people who pay €1,000 or more for car insurance. The policy is not suitable for people who pay less than this for their annual premium.

Renewals
XS Direct gives the example of Karen O'Neill a beauty consultant who previously worked as an air hostess with Aer Lingus. She is 28 and drives a Mini convertible. She made a claim last year for a minor accident and was dismayed to find a renewal quote this year of €1,350. She turned to XS Direct who quoted her €850.

Some other examples of XS Direct's books give a flavour of the savings on offer.
A lady driver in her 30s drives a 1.5 litre family saloon car worth €12,000. She had a claim last year that sent her insurance quote up to €1,410. Now XS Direct cover her for €790, though if she makes a claim she'll have to pay the first €2,000 of the claim cost.

A male driver who also claimed last year drives a 1.9 litre BMW worth €20,000. He was quoted €900 by XS Direct, well down on the nearest quote of €1,410. Again this young man is taking the risk that he won't be making a claim this year. If he does, he will have to stump up the first €4,000 of the claim cost.

Whether this type of policy is for you is really all about your personal appetite for risk and how lucky you feel as a driver.

(c) The Sunday World

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New policy will save drivers hundreds of euro
Wexford Echo

New policy will save drivers hundreds of euro

Two of the country's leading insurers this week urged high premium motorists to review their car insurance deals as a result of the launch of a new insurance policy.

The new concept is very simple. Nearly every car insurance policy has an excess, where drivers pay the first part of any claims.

The new product from XS Direct has a higher excess - €4,000 for men and €2,000 for women. This policy does away with the no claims bonus and everyone starts with a clean slate.

For drivers of high value cars or those who have lost their no claims bonus, a high excess can offer significant savings.

According to Tony Doyle from the Creane & Creane in Ennicorthy, "The response from clients has been strong particularly from this who have recently lost their bonuses or who drive high value cars.

"Brokers are here to give advice and highlight any possible savings and this is definitely one to check out for if you're paying more than €1,000 in car insurance."

The number of drivers in Wexford has increased greatly since 1998. In the same period, accident frequency was still relatively high. The expectation among brokers, however, is that road safety measures and the Personal Injuries Assessment Board should bring further improvements.

The entry of this new company into the market is, therefore, welcomed providing competition in a market where drivers often find it difficult to get an affordable quotation for high premium cars or drivers who have lost their full bonus.

According to Michael Corcoran of Culletons, "many drivers in Wexford in cars with a two-litre engine or higher don't have a no claims bonus. The new policy will benefit these high premium drivers and we're happy to make it available through Culleton Insurance."

Market research highlighted that only one quarter of motorists actually make a claim under their policies following damage to their car, because motorists know that after making a claim, you lose bonus and you will be penalised over three times your annual premium before you get back your no-claims bonus.

(c) The Wexford Echo

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