4 January 2010

M&S Home Insurance Helping Householders Reduce Their Environmental Impact

• M&S Home Insurance to offer claimants energy-efficient fridge freezers, refrigerators, washing machines, tumble dryers and dishwashers
• Homes to be rebuilt with sustainable, energy-efficient materials

M&S is the first home insurance provider in the UK to offer policyholders two unique features which help householders reduce their impact on the environment if they make a claim.

From 4th January 2010*, at no added cost to the policyholder, M&S Home Insurance will offer the following elements which help households reduce energy costs and carbon emissions:

• Sustainable reinstatement of kitchen appliances: when a customer makes a claim for a fridge freezer, refrigerator, washing machine, tumble dryer or dishwasher, they will be offered a replacement which is A rated for energy-efficiency. A replacement electrical kitchen appliance will potentially save up to 140 KG of CO2 each year**.

• Sustainable total rebuild: if a property is damaged severely and warrants a total rebuild, properties will be rebuilt in line with the Code for Sustainable Homes (CSH) 4. This involves the use of sustainable materials where possible, significantly improving the energy efficiency of the property. Rebuilt properties will emit at least 44% less CO2 than building regulations would stipulate***.

Insurers usually replace lost or damaged possessions with their equivalent new items, returning the policyholder to the position they were in before making the claim.

M&S Home Insurance customers will instead be offered environmentally-friendly alternatives when the claim involves the replacement of the kitchen appliances stated above or the rebuild of a property.     
The new policy features have been welcomed by householders, according to the results of a survey commissioned by M&S Home Insurance.

The poll revealed that 61% of people in Great Britain would be interested in a home insurance product that would help reduce the environmental impact of their home in the event of a claim.

David Wells, M&S Head of Insurance, said: 'These new policy features, which we believe are firsts in the UK insurance market****, mean that the M&S Home Insurance policy is one of the most environmentally friendly products of its kind.

'Feedback from householders has told us that they want an insurance policy which helps reduce the environmental impact of their home in the event of a claim, and we are proud to be able to fulfil that wish in our policy.'

Nick Kidd, of AXA Insurance, which underwrites the policy, said: 'It is becoming increasingly common for companies to launch 'green' products on the basis of carbon offsetting facilities which our research suggests is not valued by customers.

'The M&S product goes significantly further by providing tangible environmental benefits which will help customers to save energy, save money and ultimately, to help save the planet. According to the Energy Saving Trust, the average home will emit around 5 tonnes of CO2 a year, so these new product features can have a real impact.

'At AXA we're committed to reducing our negative environmental impact and are really pleased to work with M&S Money on this innovative product.'

Mat Colmer, Head of Housing and Supply Chain for the Energy Saving Trust, said: 'Rebuilding houses to Code for Sustainable Homes level 4 is a demanding target covering a range of environmental criteria, so it's encouraging that M&S Money is taking its role in making the UK's housing stock more sustainable seriously.

'It's important that companies take the lead with ambitious and positive products and packages when it comes to reducing the UK's carbon emissions, while clearly explaining the benefits of these low-carbon measures to their customers.'

For more information about M&S Home Insurance, visit www.marksandspencer.com/homeinsurance or telephone 0800 068 2742.

Ends

For further information please call the M&S Money press office:
Liz Neild on 01244 686 068
liz.a.neild@mandsmoney.com

Simon Coughlin on 020 7992 1574
simon.coughlin@mandsmoney.com

Notes to Editors

*        The new features of the policy will be available to new customers effective from the 4th January and for existing customers at their policy renewal date on / after the 1st February.
**      Energy efficiency of white goods depends upon the individual appliance. Saving stated assumes that the current appliance is 'D' rated.
***     The Code for Sustainable Homes (CSH) sets minimum standards for energy and water use at each level and uses a one to six star rating system to communicate the overall sustainability performance of a new home. For more information: www.planningportal.gov.uk/uploads/code_for_sust_homes.pdf
****   The new features are unique to the UK personal home insurance market, according to a survey of the market by eBenchmarkers, an independent research company which evaluates the efficiency of direct-to-consumer financial services.

All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2012 adults. Fieldwork was undertaken between 14th - 16th December 2009.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

M&S Home Insurance – New Features

Buildings

If your property is severely damaged requiring demolition and rebuilding, where possible and when you agree, we will rebuild in line with sustainable home building practices as described by the government. This will include recycling or disposing of building waste in an appropriate environmental manner.

We will aim to rebuild properties in line with level 4 of the code for sustainable housing.

Contents

If your dishwasher, washing machine, refrigerator, tumble dryer or freezer are damaged and require a full replacement we will, where you agree, replace them with an equivalent appliance which has an Energy rating of A.

M&S Home Insurance - Key Features

• Unlimited cover on buildings and contents, limits apply to money and liability cover.
• No policy excess to pay except £1,000 for subsidence, heave and landslip claims, voluntary or compulsory excesses may apply
• M&S Home Insurance Premier Cover has been Five-Star Rated for features and benefits by Defaqto, an independent research company
• Save 20% when you apply online (available to new customers only) - discount is subject to minimum premium

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc. The company is now a top-ten credit card provider and the second-largest travel money retailer in the UK.  M&S Money also offers a range of insurance cover, including home insurance and car insurance, as well as loans, savings and investment products.

In November 2004, Marks & Spencer sold M&S Money to HSBC. The Group serves customers worldwide from around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,527 billion at 31 December 2008, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer.

M&S home insurance policies are underwritten by AXA Insurance UK plc. Terms, conditions, exclusions and limitations apply. Calls may be monitored and recorded.