Insurance giant Aviva has launched a new product that guarantees existing customers the same or a better price when they renew their insurance.
The group, which employs 2,000 people at its life and general insurance business in York and 1,500 at its life and health insurance operation in Sheffield, said 82 per cent of its customers say giving new customers a better deal is one of the most unfair practices of the insurance industry.
AvivaPlus is designed to address consumer concerns with the industry, offering monthly payments with no APR, no charges to cancel or change and a renewal price guarantee.
Aviva, the UK’s largest insurer, said the launch is a first for the insurance industry.
The guarantee ensures existing customers are offered the same, or a better, price as a new customer at their next renewal.
AvivaPlus will be rolled out over the next few weeks and will be available to new and existing customers who buy directly from Aviva, via aviva.co.uk, MyAviva, the online customer portal or contact centres.
Aviva’s UK Insurance CEO, Andy Briggs, said: “We recognise that consumers want the insurance industry to listen to them so we’ve worked with thousands of customers to understand how insurance could better meet their needs and provide the flexibility they want for their modern lives.
“AvivaPlus is a reinvention of insurance, which has been developed and tested with customers’ needs at the centre, and it’s now starting to roll out alongside our existing products. Like subscription services, it’s designed to make it easy for customers to change their cover as often as they want without incurring charges.
“Importantly, AvivaPlus addresses price disparity, regarded by an overwhelming majority of consumers as one of the most unfair practices of the insurance industry. With our renewal price guarantee, which ensures existing customers are offered the same or an even better price than an equivalent new customer, we’re creating a level playing field for new and existing customers.”
Initially, customers will be able to buy AvivaPlus home or car insurance, with three tiers of cover so customers can choose the level and price that suits their needs. Aviva said the products have been simplified and it is easier for customers to check their level of cover and switch between the tiers. Customers who buy home and car insurance together can benefit from a single renewal date as well as a multi-product discount.
Blair Turnbull, MD of Aviva UK digital, said: “AvivaPlus is a significant milestone in our ongoing digital strategy which, through our commitment and investment in innovation, is making things more convenient, easier and quicker for our customers.
“It’s a continuation of our journey and it represents a step change in how we’ll offer products to our customers in future.”
The insurer said the new product will be easier to use, with a reduction in the number of questions asked during the quote and claims processes. The language has also been simplified so customers can claim quickly and easily.
Mr Turnbull added: “This is just the beginning. AvivaPlus is leading the way to help rebuild consumer trust and confidence. Over time we plan to add other types of insurance to AvivaPlus, as well as more features and reward benefits.”