We would like to thank all brokers whosupported our Motor Trade Road Riskcampaign which ran across the summer.

The chocolate themed campaign saw record breakingresults with sales of Motor Trade Road Risk policiesincreasing by over 100% compared to the same periodin 2016.

For each motor trade road risk policy sold during theperiod brokers received a box of chocolates – this sawa huge “Boost” in sales which of course is not to be“Snickered” at!

Anyway, now that the campaign has finished you canrest assured that all chocolate bar puns will also nowcome to an end!

We never realised that so many of you had such asweet tooth!

For more information contact TFP's Motor Trade team on 029 2030 1031

or at solo@tfpschemes.co.uk

In January 2017, PIB acquired TFP Schemes aspart of its long term strategy of growing the PIBGroup through selective acquisitions, which itbelieves will enhance the services of theirunderwriting facilities.

Founded in 2014, PIB is growing rapidly and offers arange of specialist products and services tobrokers throughout the UK.

Although the trading history of PIB is relatively short,it has built a team which has worked across theindustry, often with large UK and InternationalInsurance Brokers. TFP Schemes has provided theGroup with another unique specialist service.

In the last few months PIB has acquired two furthercompanies continuing this successful acquisitionstrategy, more will certainly follow in 2018 and beyond.

New developments in 2018

In the 10 months since the acquisition we haveworked with the Group to build new opportunitiesto expand our products and services. In 2018, theresults of these working partnerships will becomeavailable to our brokers as TFP Schemes launchesa series of new products to complement ourexisting portfolio - so please do watch this space!

We would like to thank all our brokers for theircontinued support in 2017, we are delighted with thepositive feedback following these changes. This I amsure is the result of our commitment to “business asusual” with the same team at TFP Schemes.

Damian Walsh

cover notesThe Newsletter of TFP Schemes November 2017 Issue 19

PIB and TFP Schemes

Motor Trade Road Risk Campaignsees a massive “Boost” in sales!

We wrote to you some time agoregarding the searches we undertakeon your customers before we provideyou with a quotation or renewal.

These include claims checks, identity checks,CCJ checks and the like. The searches wecomplete and the data we obtain is all in thepublic domain, so as a result leaves only a"soft footprint" against their file and thereforehas no impact on their credit rating.

Please do ensure that at the time you speak tothe customer at quotation or renewal that youexplain that TFP Schemes may carry outsearches however it doesn't affect their credit file.

Back in the old days, transportationtechnology was much simpler. Aperson who needed a taxi could eitherdial from a payphone or they couldwave their hand! With the invention ofthe internet, however, transportationtechnology has completely changedthe taxi industry – some ways better,some ways worse.

Depending on where you sit, the internet haspositively impacted the taxi industry including;• Mobile Booking: Customers can hail a cab (and

prepay) with their phones without any delay.• GPS Technology: Owners can track their fleet,

and drivers can receive immediate directions.• Instant Presence: Websites are way better at

advertising than any billboard or commercial.

Of course, the introduction of Uber has reallychanged the way the taxi industry operates.Uber, the popular ride sharing company,continues to gain market share, boasting 62million trips in July 2016, up from 54 million theprevious month. It’s currently deployed in 450cities worldwide (even with its current issues inLondon, where it's licence had been revoked)Uber can rightly claim to have revolutionised thetransportation industry.

Uber’s current business model has themsubsidising fares, thereby enabling the lowerrates to passengers. These subsidies are largelythe reason why Uber is losing money today,despite the uptake in ride volume. Uber finished2015 with a loss of $2 billion, and a cumulative$4 billion in loss since inception. At some point,something is going to have to give, and Uber willneed to make changes and move towards aprofit-generating business model.

Uber is not the only taxi app out there – Hailo,Gett and Kabbee are all making a name forthemselves whilst operators such as Addison Leeand Veezu continue to shake up the taxi marketby investing in new technology.

In order to compete, taxi companies need toimprove their service levels, introduce app-backed hiring options, and offer alternatives tocash payments. By improving efficiencies andcatering to what customers want, taxi cabs willthen find that they are in a position to win backtheir lost customers.

In June TFP Schemes appointed Martin Harrisas Broker Development Manager.

Martin joined TFP Schemes from ERS with 38 years'experience in the industry most of which has beenspent in the broking sector.

At ERS his role was to manage broker relationshipswith the syndicate working to develop accounts acrossa wide range of products with brokers.

Prior to this Martin held a number of positions withinthe industry which have included; working withbrokers at Broker Network, MD of a multi-site brokingbusiness within Towergate, and spending 5 years asArea Director with Barclays retail bank. His careerstarted at Hill House Hammond in various rolesculminating in a national role for the business.

If you are interested in discussing any potential growthopportunities with TFP Schemes further please don'thesitate to give Martin a call on 029 2030 1030.

Customer Checks and

Searches

Technology andits impact on the

taxi sector

Martin Harris joins

TFP Schemes

Earlier this year, UK insurers attacked as"crazy" Government plans to change theway personal injury compensation pay-outsare calculated.

The Ministry of Justice announced it would cut thediscount rate – a calculation used to determine lumpsum compensation to claimants who have sufferedlife-changing injuries - to -0.75pc from 2.5pc.

The news came as a shock to the industry, which hadwidely expected the rate to fall to between 1.5pc and1pc.The change came into effect on March 20th 2017,marking the first time it has been changed since2001. The move cost the insurance industry millionsof pounds and sent premiums higher for customers.As a result of claims soaring an increase in motor andliability premiums for millions of drivers andbusinesses across the UK was predicted.

At the time of the announcement, the ABI predictedthat up to 36 million individual and business motorinsurance policies would be affected in order to over-compensate a few thousand claimants a year.

"The announcement of a move to -0.75pc meansmany insurers will need to further increase theirreserves, potentially impacting expected results foryear-end 2017 for those who have alreadyannounced their results and year-end 2016 for thosethat have still to report.

"Unfortunately, this announcement will have asignificant adverse impact on motor insurance pricesthat drivers pay and also commercial insurance ratespaid by small businesses.

Impact on reinsurance companiesThe change has also impacted on reinsurance pricingby pushing prices up for motor and liabilityreinsurance cover. This will have a major impact oninsurers that rely on low layers of reinsurance whowill be faced with much higher costs of doingbusiness after they renew their reinsurance in 2018.

TFP Schemes and OgdenSince the introduction of the Ogden rate, TFPSchemes and other reputable insurers have had nooption but to review their current pricing matrices.This has resulted in an increase in our insurancepricing over the last 6 months.

We are aware that some insurers have not reviewedtheir prices since the introduction of the change.With the implementation however of the new Ogdenrate and the possibility of serious pricing changes inthe reinsurance market in 2018, in our view insurerswho have ignored the above may have quite a“shock” in the near future.

We are pleased to say that our reaction to thechanges ensures that our financial viability goingforward is based on sound accounting which allowsour brokers and their clients to have everyconfidence in our policies.

The Ogden rate – why rates have increased!

• The Ogden Rate, is a calculation used by thecourts to determine how much insurancecompanies should pay out to customers in casesof life-changing injury. The discount rate is set bythe Lord Chancellor and is used by courts tocalculate future loss in personal injury cases.

• When victims of life-changing injuries acceptlump sum compensation payments, the actualamount they receive is adjusted according to theinterest they can expect to earn by investing it.

• The compensation award using the rate is meantto put the claimant in the same financial positionhad they not been injured, including loss of futureearnings and care costs.

• The percentage rate, which has been cut from2.5pc to -0.75pc, is used to calculate future losses.

• For instance, under the old rate, an insurancecompany would need to pay out £975 to aclaimant to cover a £1,000 loss. That's because:• £975 x .025=25• £1000 - £25= £975.

• In other words, under the old system, the claimantwas expected to earn 2.5pc interest a year on alump sum payment of £975, which would yield£1,000.

• Under the new -0.75pc rate, the insurancecompany will have to pay £1,007.5 incompensation because:• £1,000 x 0.0075 = £7.5• £7.5 + £1,000 = £1,007.5

• The Discount Rate is linked, by law, to returns onthe lowest risk investments, typically Index-LinkedGilts. The yield on these gilts, or Governmentbonds, has fallen dramatically since 2001.

What is the Ogden Rate (Discount Rate)?

This Christmas send us all your quotations for TFPSchemes products and make this "the season to bejolly!" The more quotes you send us the morechance you have of turning them into sales!

The TFP Schemes Christmas Quotes promotioncommences on the 20th November 2017. Thepromotion rewards brokers for sales of our productsfrom the 20th November to the 20th December.

For each new sale of the products listed below thefollowing Christmas Quotes reward points will beallocated to the individual broker.

At the end of the promotion the Christmas Quotespoints accumulated can be exchanged for CapitolBond Shopping Vouchers which can be used in over200 high street stores.

So get your Christmas off to a flying start and makeit a Christmas to remember!

To join in the Christmas Quotes promotion you mustregister by emailing your details tochristmas@tfpschemes.co.uk

Once registered we will automatically distribute yourvouchers to each broker at the end of the promotion.Terms and conditions available on request.

notice the difference029 20 30 10 30 • www.tfpschemes.co.uk

The TFP Schemes Christmas Quotes promotion

Sale of: Christmas Quotes PointsTruck 8.55 10 pointsExecutive 5 points

Motor Trade Road Risk 5 pointsFuneral Homes 5 points

Agricultural 5 pointsSpecial Types 5 points

Christmas Quotes Points Capital Bond Voucher Value200 points £1000100 points £50050 points £25020 points £100

What's going to be your favourite Christmas quotation? - Truck 8.55? Special Types or Motor Trade Road Risk?

Wishing all our brokers a Merry Christmas and a prosperous 2018!