Aviva launches first ever ‘best price’ auto-renewal insurance product

Written by Rebecca Jones on 5th Dec 2018

Mega insurer Aviva has announced it is launching an ‘industry-first’ subscription-style insurance product, which will ensure that loyal customers receive the best price available on their car and home insurance renewals – rather than being ripped off in return for their loyalty.

The firm says that its new ‘AvivaPlus’ product for home and car insurance will offer simple, flexible insurance cover, monthly payments with no APR, no charges to cancel or change and – breathtakingly – a renewal price guarantee.

The latter feature is the main focus of the launch, which Aviva says is aimed at addressing price differences between new and existing customers.  The guarantee ensures existing customers are offered the same or an even better price than an equivalent new customer at their next renewal.

The launch follows wide media coverage of so-called ‘loyalty penalties’ for customers that do not regularly switch to new providers for their insurance and other home services products like broadband, with providers only offering the best deals to new joiners.

In September the Citizens Advice Bureau lodged a super complaint to the Competitions and Markets Authority concerning the issue, in which it claimed that UK customers who stay with the same provider are overpaying for household services by a total of £4.1 billion a year.

Aviva says its new product is designed to address consumer concerns with the industry and give customers more control.

Tackling ‘unfair practices’

Chief executive of Aviva UK Insurance Andy Briggs, says: “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.

We’re creating a level playing field for new and existing customers

“Importantly, AvivaPlus addresses price disparity, regarded by an overwhelming majority (82 per cent) 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.”

The firm says 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.

Initially, customers will be able to buy AvivaPlus home or car insurance, with three tiers of differently priced cover.  Customers who buy home and car insurance together can get a single renewal date as well as a multi-product discount.

Aviva says the new product also features an ‘easier customer journey’, with the number of questions asked during the quote and claims processes cut and the language ‘simplified’ to ensure customers can claim and interact with Aviva quickly.

 

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