After announcing a rise in GWP yesterday (see
Hiscox reports increase in profits amid volatile market), insurer
Hiscox is now set to ramp up its marketing in a bid to attract more first-time insurance buyers and move away from volatile risks.
Typically, Hiscox has been seen as a specialist insurer – often underwriting difficult risks including kidnappings and terrorism. However, in an effort to offset market volatility it now plans to focus in on “big ticket lines” – including the likes of commercial property and aviation.
That’s according to a report in the Telegraph, which outlines that the company has spent £175 million on marketing during the last five years and that it plans to spend another £50 million this year – upping its budget from £42 million during 2016.
“If you haven’t seen our advert for home owners, then you’re living in the wrong area,” chairman Robert Childs told the publication. “Our engine is running faster and smoother.”
The focus is said to be on UK entrepreneurs and first time insurance buyers with the firm looking to reduce the impact of factors over which it has no control. Even though it reported a 4.8% constant currency rise in GWP, currency movements cut its pre-tax profits by around £30.9 million. Taking out currency movements, its profits climbed 12.5% to £133.5 million.
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