Talk the talk

Chris McCann, managing director of new niche motor insurer XS Direct, talks to David Clerkin.

You’re targeting motorists who are seen as risky bets by their existing insurers. Who are these drivers?

Our aim is to provide a low-cost alternative to motorists who are paying premiums of over €1,000 a year - particularly those drivers who have lost their no claims bonus, motorists with expensive or high-performance cars, and people moving out of company car schemes.

How can you cut premiums for them? What do they have to give up to get lower premiums?

Our first product, Excess, will allow motorists to cut insurance costs by taking a higher policy excess, similar to what is available for business and commercial users.

With a higher excess of €4,000 for males and €2,000 for females, XS Direct policyholders know exactly where they stand.

Making a claim will have no impact on the pricing of their renewal. Take a driver with an annual premium of €1,000. By making a claim and losing their 50% no-claims bonus, they will pay a penalty of €3,000 (additional premiums over the next five years) before they get back their full no-claims bonus.

How much can they save?

The typical saving for customers is in excess of €500, some customers have saved up to €1,500. Our research showed that drivers want lower premiums, not to pay for benefits and extras which they may never use.

Has take-up matched expectation?

Initial interest has been very strong. We’re getting good telephone and web traffic to www.xsdirect.ie.

What happens if a third party claims against one of your policy holders and the policy holder can’t afford to meet a bill that’s not covered by the excess?

This situation would be unusual, as very few claims only involve damage to third parties.

For the consumer, getting access to €2,000 or €4,000 shouldn’t be a problem in this day and age when you consider most people spend upwards of €15,000 on their car.

What other products will you have in the pipeline?

XS Direct is currently assessing the merits of launching a unique youth product within 12 months.

Anything else?

The product is available nationwide through appointed insurance brokers. Quotations at 0818 222 888.