NIG Launches Essential Property Owners Product

New product release assisted by broker feedback

Specifically aiming to cater for the SME segment

Targeting a market estimated to be worth £1bn p/a in gross written premium

Leading commercial insurer NIG has introduced a new product for commercial property owners after identifying a gap in the market. Initially only available to a limited broker panel, including NIG First, NIG's select group of most valued brokers, Essential Property Owners (EPO) is an SME-focused version of NIG's top-end Premium Property Owners (PPO) product.

EPO is targeted at clients typically paying between £5,000 and £25,000 in annual premium for property owners' insurance. The EPO policy has core benefits similar to PPO, including damage to buildings, loss of rent and property owners' liability; however, a suite of additional covers are optional rather than standard and these can be purchased at an additional price where required. This ability to buy-in additional covers such as legal expenses, engineering breakdown and financial loss has not traditionally been available in one policy for the SME market and offers a unique selling point for the new EPO product.

PPO, which was launched in July 2010 for NIG's large property owning clients, has been extremely well received by its Property Owners broker panel and has enabled NIG to significantly grow its market share. However, broker feedback suggested that the SME market was underserved in terms of policy coverage, a gap now filled by EPO. The new product also supports NIG's 'top to bottom' segmentation strategy: NIG Network's package products such as Commercial Landlord and Residential Landlord cater for policies up to £5,000 in annual premium; followed now by EPO (£5,000-£25,000 in annual premium); with PPO sitting at the top end.

Stewart Anderson, Head of Property Owners at NIG, said: "We are extremely proud of our strong relationships with our limited panel brokers, and it is through these relationships we have been able to identify a significant gap in the SME market.

"We have had extremely positive market response since launching our PPO proposition 19 months ago, and through broker feedback we have identified a demographic that requires a similar package, but who were dealing within different financial constraints. This means the ability to pick and choose optional covers as appropriate was key.

"Working with our brokers in this way allows us to be confident that there is a real demand for the benefits that our Essential Property Owners offering has for customers. While this policy is being offered to a limited panel initially, we are aiming to roll the offering out to a full range of partners later in the year."

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Notes to Editors:

NIG provides insurance solutions to small to medium sized businesses throughout the UK. Established for over 100 years, NIG provides its insurance exclusively through a network of over 3,200 brokers.

By working closely with our selected brokers, NIG provides a wide range of insurance products for commercial needs protecting businesses.

NIG is part of The Royal Bank of Scotland Group's Insurance Division, the second largest general insurer in the UK.