Business model

Maximising value from our business

Agile pricing maximises customer capture and income without negatively impacting underwriting profitability

Determines the appropriate technical net rate

Retail

Asset 6

Hastings Insurance
Services Limited

Underwriting

Asset 5

Advantage Insurance
Company Limited

Asset 7

Price comparison websites

Asset 8

Direct

Data capture

Sophisticated data capture allows us to refine and optimise our pricing strategies

Asset 9

Disciplined approach
and risk expertise

Our business model in action
A disciplined approach to underwriting and agile pricing maximise value through a focused brand and product portfolio and multichannel distribution model.

The strength of the Hastings business model

  • A focused set of products
  • Sophisticated approach to data and analysis in pricing
  • Separation between technical and retail pricing
  • Agility in a price comparison way of working
  • A capital efficient underwriting model
  • Market-leading innovative risk selection and counter-fraud management
  • A simple and straightforward systems landscape
  • An effective control framework and culture

Focus
The Group has chosen to specialise in the UK private car insurance market, which currently accounts for 86% of live customer policies (‘LCP’). Within this market our primary focus is on digital distribution through price comparison websites (‘PCW’) and direct distribution through our retail brands’ websites. The Group also provides home, bike and van insurance.

Our business
The Group operates across the insurance value chain through the Group’s Retail and Underwriting businesses. Clear separation is made between these businesses to ensure the Underwriting entity receives the technical net rate that it quotes and the Retail entity maximises customer capture and income, without negatively impacting Underwriting profitability.

The business is underpinned by sophisticated IT systems to analyse and process
applications. In order to support the Group’s business strategy with the delivery of digital/customer self-service capabilities, the Group’s software systems are being upgraded to Guidewire ClaimCenter and Guidewire PolicyCenter, helping to optimise the claims process, providing greater control to colleagues, reducing the claims lifecycle workflow and activity management and early liability decisions.