Important Financial Decisions

Launched on 31st July 2006, Castle Cover operates from Poole in Dorset and has from the outset aimed to provide insurance cover at competitive prices. It does this by focusing exclusively on the over 50s market, which is seen as a low risk area where a low level of claims means premiums can be kept at a correspondingly low level.

The initial product was home insurance and the launch was publicised mainly through a direct mail campaign, which was considered the most appropriate medium for the target market. Each mail pack contained a number of flyers plus a personalised letter that emphasised the trustworthiness of the company and the affordability of its products. To encourage response, a free pen and participation in a prize draw were offered.

The success of the launch saw the company grow to 200,000 policyholders and be named the fastest growing UK home insurer in 2007 by Consumer Intelligence. Since then, the initial home insurance offering has been expanded to include various options in addition to the usual building and contents cover. These include policies for holiday homes, static caravans, garden and buy to let insurance as well as home emergency cover.

A later addition to the home insurance offering is Regal Insurance, which provides higher value cover for up-market home owners. This features a level of cover above that normally available (contents cover up to £500,000 and buildings insurance up to £1.5 million as at November 2010). There are correspondingly high levels for single and non-specified items plus worldwide cover on all possessions and no claims discount for those with a good claim record.

Castle Cover's next move after home insurance was into the motor insurance market, with policies again targeted at the over 50s age group. Products in the range include cover for touring caravans, breakdown insurance and substitute vehicle cover.

Travel and pet insurance are also now offered, with key cover and equity release products also available. The main elements for all policies are low cost cover for the low risk over 50s group. A customer service team is based in the UK and policies are provided through big name brands such as AXA, RSA, Sterling and Brit. Turnover was expected to reach £100 million and the number of customers to exceed 450,600 by 2011.