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114 July 2020 14th July 2020

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1. Learning Opportunities

2. Executive Summary

3. AllClear - Capabilities and experience

4. Issues created by Covid-19

5. COVID-19 Cover Update

6. How to register

7. Scheme performance and commission potential

8. Supporting BIBA

9. The next 3 years

10. Summary

Contents

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1. Learn about the specific challenges posed by the global pandemic and how that impacted the Product,

Pricing, Promotion (PR ) elements of the Marketing Mix

2. Understand the impact of decisions taken by the wider Travel sector on cancellations and refunds and how that affected the

customer/provider relationship of brokers

3. Learn about the role of the Travel insurance Bodies, BIBA and the APPG in bringing issues to attention of Government, FOS,

CMA and ABTA

4. Identify the opportunity created by the enhanced need for travel insurance

Learning Opportunities

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AllClear was first appointed by BIBA to run its medical travel scheme in 2011 and has just been re-appointed for a 4th Term.

We are the highest rated Travel Insurance provider for service on Trustpilot (50k+ reviews) and longest established Specialist Travel

Insurance provider, offering technology, pricing and product platforms across UK, Ireland and Australia.

AllClear has previously powered the travel insurance areas of comparison sites such as Google Compare, and has also worked in partnerships

with the likes of Asda, Holiday Extras, BUPA and Aviva.

Our in-house technology delivers unique, condition level, risk rating with real-time pricing, and straight through, seamless, customer journey.

This allows us to quote in 99% of scenarios.

We’re the only Good Housekeeping reader recommended Travel Insurance specialist and partner with multiple leading insurers, charities,

household retail brands and media companies.

Executive summary

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AllClear partners

AllClear is dedicated to long term relationships, our drive, and flexible approach has enabled us to grow long standing partnerships of which we are proud.

AllClear has been the leading partner provider for brands such as Aviva, Direct Line, Diabetes UK, Motability and BIBA. We are experts in the charity sector.

Household brands, charities and white label propositions use AllClear

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Specific Challenges posed by COVID-19

WHO Declaration of global pandemic – 12th March 2020. FCO ban on all but essential travel worldwide.

Impact:

• Any policies bought after March 13th 2019 would not offer any COVID-19 cover benefits – pandemic became a ‘known event’

• Any policy cover benefits became immediately void if a policyholder travelled against FCO advice

• For those with valid claims – travel insurance pays out for ‘irrecoverable losses’

• Many of the biggest travel insurance brands and those who do high volumes on aggregator sites immediately stopped selling

• Huge volume of calls created for a business just making the transition to working from home

• Business dealing with no opportunity to sell new policies and inundated with claims requests from policy-holders or wishing to have a policy refund

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Specific Challenges posed by COVID-19

ACTIONS

• Communication was key – spoke directly to those specific travel insurance brokers and wrote to everyone else. Liaised with BIBA to ensure approach was co-ordinated. Dealt with any specific areas of concern as quickly as possible

• Worked with underwriters to get creative on the product to try to stem flood of cancellations and provide some form of perceived value:

- Annuals bought in 2020 – expiry date immediately extended by 3 months

- Introduced for a limited period - 15 month annual policies for price of 12

- Single Trip – dates extended for up to 12 months

- Up to 90 day start date deferral for annuals

▪ Provided flexibility on refunds – offered a 20% enhancement on the refund if accepted voucher redeemable for up to 36 months for Single trip; normal refunds in cash also always available

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Specific Challenges posed by COVID-19

IMPACT of DECISIONS TAKEN by WIDER TRAVEL INDUSTRY

• Not paying Refunds – specific decisions taken by package tour operators, airlines and suppliers to make it as difficult as possible to get a refund (other than voucher) which is against the EU law to protect consumer rights

• Worse still – a blasé attitude in recommending that they should seek recompense from their travel insurance provider

• Reputational damage to Travel insurance – policies not worth the paper they are written on; terrible customer journey; increase in poor customer satisfaction ratings and increase in FOS cases at £650 a time to insurance

ACTIONS

▪ Active discussions between AllClear and BIBA to co-ordinate our response to line up with other bodies such as ABI and ATII with APPG for insurance Committee to take up with Government, FOS, FCA, CMA and ABTA

▪ Raise awareness with Press Release from APPG and to lobby the Travel Industry Committee to encourage them to fulfil their legal obligations to their consumers

DANGER – less people (already 20 – 25%) travel without insurance at a time when they could need it more than ever

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Product specialists – COVID-19

✔Emergency Medical Expenses: Covered – up to £15,000,000 whilst overseas and falling ill with COVID-19

✔Cancellation and/or Curtailment: Covered – if a trip has to be cancelled due to any named person falling ill with COVID-19 or another person named on the policy, has to cut short their trip or has to be quarantined.

✔Repatriation costs: Covered – where someone is ill with COVID-19 and deemed medically necessary to relocate them

✔Recuperation costs: Covered – where someone needs to stay overseas once out of hospital

✔Travel expense costs: Covered - for a relative to fly out from UK to join their relative and stay with them (up to £2k)

✔Flights home: Covered – flights back to UK once patient has recovered and up to 1 relative

X –Travel against FCO advice – unless travelling with special dispensation and agreed by the Underwriter to offer cover – all benefits of coverinvalidated

X – FCO advice changes to re-instate countries as excluded from travel – cancellation cover benefits for any new policies sold after thechange or advice would be excluded as would trips booked in the time that the destination was excluded

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BIBA Medical Scheme provided by AllClear

How it Works

1. Go to allclearbiba.co.uk

2. Fill in the registration form – please note you will needyour FCA number

3. You will be sent a 3 digit ID Code – use this to log-in each time you use the system

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BIBA Medical Scheme provided by AllClear

How it Works

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BIBA Broker Scheme: 2011 - 2019

✔21,000+ policies sold since 2011 launch

✔C. £8,000,000 GWP achieved by end 2019

✔£372 Average premium

✔£102 commission per sale (based on 27.5% rate)

✔ AMT/ST: Average 40% AMT vs 60% ST over 9 years

✔ Average Age: Consistent over 9 years at 68 years

✔ Traveller product: Popular for Single trip/Europe/+70 saw large

losses in 2017 leading to price increases in 2018. Reliance on

Traveller product reduced from 25% to 12.5% of total policy sales

with significant improvement in loss ratios

✔ Notable increase in AMT since 2017

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Taking an interactive, educational approach to increase consumer awareness and knowledge of Travel Insurance. Providing supporters confidence and security whenever or wherever they travel

Supporting BIBA

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Clear objectives and communication opportunities to drive ongoing improvements and growth

BIBA and AllClear: The next 3 years

Objectives: ✔Increase number of brokers engaging with and using scheme

✔Grow scheme revenue for BIBA and BIBA brokers

✔Maintain and protect the reputation of BIBA

Opportunities for growth and service enhancements

✔Expanded product choice: Integration of Cruise products, Gold Plus (Cruise add-on), Platinum Cruise included automatically

✔Auto-renewal for travel insurance customers

✔BIBA broker communications programme: Newsletters, Broker magazine, webinars, e-shots, regional events

✔Raising awareness: Content and sharing social media

✔Continued close liaison with BIBA on FCA Access to Insurance and FIS scheme of which AllClear is fully supportive

AllClear is committed to working strategically to raise awareness: Supporting BIBA and the FCA and signposting for vulnerable customers:

✔Fully committed to work closely with BIBA and FCA to ensure we make it simple and easy for customers to find the insurances they need

✔We do not believe living with medical conditions necessarily means all customers are in ‘vulnerable circumstances’. We are committed to helping customers enjoy extensive overseas travel with peace of mind that comes from the right travel insurance cover

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Building on 3,000,000+ customers covered and counting…

ANY QUESTIONS?