Due to the short-term nature of temporary motor insurance, there is an increased risk factor as drivers are generally less familiar with a vehicle they don’t drive regularly.  This risk factor can result in an increase in insurance prices and excesses.

Leading short-term motor insurance specialist, Tempcover, sought a solution that would help customers to lower the risk of paying a high excess, whilst still protecting its panel of insurers. Working with Coplus, an experienced provider of excess insurance, a new excess reduction policy was created.   Research with Tempcover’s customer base showed this would provide a solution to reduce the excess to a level customers are more familiar with, based on their annual car insurance.

As an existing partner of Coplus, Tempcover recognised the benefits of integrating the excess reduction policy into the ‘First Notification of Loss’ (FNOL) service. The result being a straightforward, holistic claims journey.

Paul Salter, Chief Product Officer at Tempcover said, ‘When looking at how we could offer a way to reduce excess, it was vital we caused no detriment to our insurers. Reducing the excess rather than covering the whole amount ensures customers still have a financial stake in the process, whilst providing a product that offers fair value, which we think is important.’

The addition of excess reduction increases customer choice and the results have been extremely positive. Conversion rates have exceeded Tempcover’s expectations, and the lower excess hasn’t affected loss ratios. Paul Salter added, ‘We’ve been given good support. Quick service delivery is a major skillset of Coplus and we are really pleased with how this product is performing.’