BEHIND THE SCENES AS NEW BFG POLICY GOES LIVE  <back

Three years ago, with motor insurance premiums soaring year after year and so few companies offering cover, Lt Col Alan Knipe (the then head of the BFG licensing office) wrote to all UK Insurance Companies requesting that they consider writing motor insurance policies for the benefit of HM Forces personnel based in Germany. Unfortunately, not one of them was able to respond favourably and one company previously operating even withdrew their cover. And so he turned to SIIAP (the Services Insurance & Investment Advisory Panel) to assist.

SIIAP consists of companies who have specialist knowledge and experience in the provision of Insurance and Investment advice to individual members of the Armed Forces. The organisation provides a useful link between these brokers, intermediaries and IFAs and the Ministry of Defence. Therefore any problems or issues that arise, due to the unique lifestyle of Service personnel, can be identified and resolved.

So how come the lack of choice occurred in the first place? Keith Frampton co-ordinator of the new BFG Motor Insurance scheme explains: “A few years ago BFG personnel had the choice of three German insurers and a number from the UK market such as General Accident, Guardian Royal Exchange and Norwich Union. Unfortunately, due to a variety of unconnected events, such as company mergers, acquisitions and decisions taken by some insurers to concentrate on specific market areas, one by one they left the scene leaving really just Norwich Union and Albingia (now renamed AXA) to compete for the business.”

Working with SIIAP, specialist insurance broker, TF Insurance Services picked up the task and they then began identifying the needs of the product and negotiating with insurers.

“We drew up a list of the strengths and weaknesses of the various products available and also enlisted the support of 100 Service men and women who participated in an in-depth review of their current insurance policy, the alternatives available and their particular wants” Keith explained. As a result the new policy offering covers many features that some others don’t include such as theft cover throughout Europe and a Protected No Claims Bonus option.

“However, many of our respondents resented having to take extra cover such as roadside assistance with the insurance policy when they already had the cover in place provided by the manufacturer when the car was purchased,” said Keith. Therefore, the new scheme allows these benefits to be optional.

“We believe the choice of Groupama Insurance Company to underwrite the scheme was an excellent decision,” explained Keith. “They have spent substantial time and effort developing schemes and with various awards and nominations relating to the quality and content of their products and service, the Group can often claim to be at the ‘cutting edge’. In 2002 Groupama was voted “Underwriter of the Year” at the prestigious British Insurance Awards.”

The new scheme, available to all BFG personnel, was launched on 1st June 2003.

BFG motor insurance is also currently available from NAAFI Financial and Natocars Insurance Services.