Certus client Building Block launches GAP motor product with Nova

Building Block PCC, the Maltese-based insurer and protected cell company, is to partner Essex broker Nova Insurance to sell a new GAP product. According to Building Block’s CEO Paul Brierley, the partnership will create new intermediary distribution channels for GAP and deliver more choice for customers beyond the traditional motor trade route to market.

He said: “Brokers with access to Nova’s products can become an alternative route to the traditional motor dealers and provide the public with access to GAP as a useful addition to their private car policy.”

Paul continued: “We have designed the product to include an ‘agreed value’ option, which means the policy does not have to be taken out at the point of sale. It makes it ideal for brokers to offer GAP to their existing private car customers.”  

Paul said the new FCA rules included a deferred sale process for motor dealers, designed to highlight that other distributors are available, identify the elements included in the price (splitting out premium from commission is key) and allowing consumers time to gather information and shop around for gap cover before making a decision.

Hassan Soyer, director of Nova, which has 50 brokers in its network, said: “Gap insurance is a good product but the FCA says the traditional add-on sales process is flawed. In a recent auto industry survey* over 70% of dealers said their GAP sales are likely to reduce as a result of the new rules, and nearly half of those said their sales could reduce significantly.

He added: “We believe this creates a great opportunity for our brokers to step in and provide this service, both following purchase and also when a customer informs us of a change to their policy.”

The GAP product, which goes live at the end of the year, is the first of five niche and specialist products Building Block plans to introduce and trade through various distributors, including brokers and affinities.

Paul said: “Building Block has a twin strategy to develop, launch and build distribution for a number of specialist products, including GAP, next year, and to encourage brokers and affinities to work with us and set up their own insurance company via the protected cell structure.”

We are delighted to be launching our first product in partnership with Nova, and expect to bring many more products to the market during the course of 2016.”