In reply to jdh72:
Following my posting last night, here’s some further details about what’s going on with BMC Insurance.
We were with our previous underwriters, Fortis, for about ten years. About six months ago they announced that they were considering withdrawing from our scheme, which meant we had to find a replacement with the help of our brokers, Perkins Slade. ACE soon emerged as the preferred choice and we’ve spent the last three months negotiating details.
This change of underwriter was triggered by a few trends and one-off occurrences over the last few years – some specific to the outdoors world, others an unavoidable consequence of the financial crisis.
Unsustainably good value
Firstly, our insurance had become unsustainably good value (i.e. far too cheap) for certain categories: older people, snowboarders and certain geographical areas such as North America. Claims for these categories tend to be expensive – hence the new loadings to reflect our recent claims history. In addition, we managed to hold our rates almost level for three/four years instead of raising them yearly – great news last year, but the downside is that the recent percentage increase will seem higher.
Large claims
Secondly, we’ve had several particularly large claims: a £210,000 bill for a rescue from Antarctica, a number of high-cost snowboarding claims from the USA and some big hits from accidents on cruise ships. These claims weren’t from our core members going climbing, hill walking or mountaineering, so we’ve addressed the issue by introducing a detailed questionnaire for polar region cover and increasing the policy loading on snowboarding from 35% to 50%.
The financial crisis
Thirdly, and most importantly, the Travel Insurance sector as a whole is suffering from the hangover of the financial crisis. You’ll see significant price hikes across the board – we’re one of the first to introduce the new rates but others will soon follow. This is driven by the weakness of the pound against foreign currencies (overseas medical bills become much more expensive when paid in pounds) and the fact that medical costs in the USA are becoming even more astronomical than they have been in the past.
But one thing remains unchanged: no matter what happens to you, wherever you are in the world, you can rely on BMC insurance to get you home. ACE is a quality set up with a long-term commitment to mountaineering and for emergency situations they use First Assist. Our BMC insurance experts have visited the First Assist operation and returned very impressed – if you get into trouble in the mountains, make no mistake, BMC insurance will get you home.
The BMC works for hill walkers, climbers and mountaineers, and in the current financial climate that’s where we are refocusing our insurance scheme – not on gap year trips or snowboarders. And, unlike other companies, we’re still offering mountaineers cover in all countries and at any altitude.
All profits from the insurance sales also go straight back into our work – looking after climbers, hill walkers and mountaineers, and safeguarding access to the mountains. With other companies, you’re simply keeping the fat cats well fed.
We’re convinced that the customer service and support team at the BMC office is second to none. So if you’ve got any questions then please ring the office on 0161 445 6111 (9-5, Mon-Fri); you’ll get straight through to a real-live person (usually called Jim or Ray) who’ll be able to explain all the details of the new scheme.