FSJ (Funeral Service Journal) interviewed Suzy Middleton, CEO of SEIB Insurance Brokers (part of the Benefact Group with a charitable ownership model, a collection of specialist financial services businesses).

With more than 40 years experience of assisting the funeral profession itself, SEIB has a good understanding of the sector’s hazards and methods of financing. Suzy Middleton discusses her experience of how funerals are paid for, currently, in the UK, what is still available for improvement and how the system could be improved for families and funeral businesses.

FSJ: What are the main ways funerals are financed in the UK today?
Suzy Middleton: The UK population uses multiple methods to fund their funerals. The majority of people use their personal savings together with their estate to fund their funerals.
Prepaid funeral plans have gained popularity as a new method of funeral funding. Through prepaid funeral plans people can pay their funeral expenses in advance either by a single payment or through instalment payments to protect their family from future financial burden. Funeral insurance provides an alternative solution because it pays out a single sum after death which assists with funeral expenses.
The government provides financial assistance to families who receive specific benefits to cover specific funeral expenses.
Funeral directors provide financing plans that enable families to distribute funeral costs across multiple monthly payments when they need extra time to manage expenses.

FSJ: How has the demand for funeral directors’ insurance evolved in the past decade, and what’s driving that change?
S.M.: During the last ten years the UK witnessed a major increase in funeral directors who entered the sector because of the rising UK elderly population and the absence of entry restrictions.
The funeral market has become more competitive, yet we have witnessed significant consolidation in the market alongside new Scottish Government frameworks and CMA’s review and FCA’s involvement with funeral plans.
The UK funeral industry is changing, and funeral directors now need full insurance to guard against possible risks and liabilities in their work.

FSJ: What are the biggest holes you notice in funeral directors' insurance plans, and how can they plug these gaps?
S.M.: Common gaps often include inadequate insurance cover for specialised funeral vehicles, insufficient business interruption cover and lack of cyber insurance.
To avoid these gaps, funeral directors should work closely with insurance brokers who specialise in the funeral industry to tailor policies that address their unique operational risks.
Regular policy reviews and updates are also crucial to ensure comprehensive cover.

FSJ: How does SEIB help funeral directors protect their businesses?
S.M.: As a trusted partner to funeral directors across the UK for over 40 years. Our role is to make sure their businesses are well-protected allowing them to focus on what they do best.
We offer tailored insurance policies specifically designed for the funeral profession. That includes cover for funeral fleets, premises, professional indemnity, public liability, and even cyber insurance. We also help identify potential risks that might not be obvious at first glance like gaps in cover or areas of exposure as their services evolve.
In my opinion, in a sector driven by change – economic, regulatory, and social – the issue of how funerals are paid for continues to be front and centre. Financial planning and protection are closely linked to helping families manage costs and enabling funeral practitioners to address risk. Industry expertise, proactive guidance, and adaptable coverage serve as essential tools for those who provide support to the bereaved on a daily basis.

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