One of the first companies to sign up was Parsons Reiss, a leading supplier of engineering services and specialist machinery: “When we moved to EEF Insurance Services, our premium spend reduced by approximately 30 per cent and our policy cover improved,” said Chris Wright, General Manager.
EEF has developed EEF Insurance Services (EEFIS) in partnership with leading independent broker R K Harrison. Together, they have produced a package for EEF member companies based on a unique Scorecard. This assesses risk against a checklist of 22 health and safety-related measures and initiatives. Companies with a high score will see their efforts rewarded in the premium and benefits offered.
“We believe that companies that are serious about their obligations and that take positive steps to reduce their risk through good health and safety measures should benefit from their actions,” said Kathy Riley, EEF’s Director of Commercial Business Development
EEFIS is supported by a panel of blue chip insurance companies: Allianz, AXA, Norwich Union and Travelers. These companies have agreed to take account of EEFIS Scorecard results when calculating premiums. All of them are invited to quote for each piece of the business, therefore, clients can rest assured that a competitive process produces the premium and enhanced cover offered.
Special features built into EEFIS’s exclusive products include stable premiums and the opportunity to receive a cash-back contribution to the cost of investing in recommended risk reduction measures.
Price stability that facilitates business planning is a key benefit for any business with experience in the past of rocketing premium costs. In the EEFIS scheme, companies achieving the highest health and safety score could qualify for a fixed premium for three years. All clients can benefit from a price stability pledge that caps rate increases at very modest levels for up to three renewals via a direct link between their premium and their claims record.
In cases where risk assessments identify the need for certain specific improvements, companies responding to these recommendations will receive a contribution to their costs from the EEFIS panel.
In addition to exclusive products offering enhanced cover and terms, companies choosing EEFIS will receive a discount of up to 25 per cent of their fee when they renew their EEF membership.
“We can benefit from a further premium, saving almost 10 per cent, by undertaking some prearranged improvements in our health and safety practice,” said Chris Wright of Parsons Reiss. “And we have the comfort of knowing that EEF can help us achieve these quickly.”
One of EEF’s core service areas is the provision of health and safety advice, support, consultancy and training. Its understanding of how risk can be reduced by good health and safety practice prompted it to develop EEFIS.
Another satisfied EEFIS customer is Rectella International, producer of disposable barbeques and instantly lighting charcoal.
“Our premiums continued to rise even though our claims had reduced as a direct result of our investment and commitment to health and safety issues,” said Roy Baker, Finance Director of Rectella International. “We explored the arrangements set up for EEF members. EEF Insurance Services provided an extremely competitive, bespoke quote which clearly reflected our commitment to risk awareness and reduction.”
A pilot version of EEFIS was successfully launched in the West Midlands and two other regions last year. Within six months of securing its first client, it is on course to write more than £1 million of premium. The scheme is now rolling out to the rest of the UK.