Aviva Australia today announced it had dramatically enhanced its insurance offering, including cutting term insurance costs by up to 22%.
Aviva Australia today announced it had dramatically enhanced its insurance offering, including cutting term insurance costs by up to 22%.
Known as Protectionfirst, the initiative is aimed at growing Aviva's share of the Life insurance market by 35%. Protectionfirst includes:
- Significant premium cuts in many cases
- Generous underwriting limits - allowing large amounts of cover with limited evidence
- Enhanced income protection definitions, and
- Unique Critical Illness features
Aviva has also introduced a range of new "short term" life insurance policies, which may allow people, such as diabetics, who would otherwise find it difficult to gain insurance, to get cover for a specified period.
Announcing the new approach, chief executive officer Allan Griffiths said: "We aim to shake up the protection insurance market and have specifically designed our new product offering to do just that. We have built a back end capacity that can handle a significant increase in volume, so we have identified what counts to customers and have delivered on that.
"However, we will not lose our positioning as the quality provider in the market. Customers will get a better product at a cheaper cost, with more benefits - and we will still give them the service Aviva is renowned for.
"And, importantly, the product benefits will flow through to our existing policy holders.
"Aviva's view is that to sell insurance in the post Financial Services Reform Act environment you must offer the best product available in your chosen market. I am confident risk advisers will be very excited about being able to offer customers the best quality product at a highly competitive price - and one that has features which lead the market.
"To people outside the industry, underwriting is often a mystery. Put simply, it is the art of determining a risk. We have recognised that in the past, underwriting was too complex and have therefore relaxed a number of approaches to give our customers more opportunity to become insured with fewer hassles, such as the reduced requirement for medicals, blood tests and financial evidence to be produced before an application is accepted.
"Under our Protectionfirst initiative clients will be covered longer, more people will be insured, and there will be simpler quoting processes for advisers. We have enhanced our policy clarity and selling support, reduced the evidence required for underwriting, and with the enhanced definitions have made claiming simpler," said Allan Griffiths.
Aviva has just completed a national roadshow launching the Protectionfirst initiative to financial advisers and risk specialists.
"The reaction to this initiative has been outstanding," said Allan Griffiths.
"What a lot of advisers have been telling us is that they are very excited about being able to offer their customers Aviva products. In the past many have considered Aviva too expensive but pined for our quality of service. One adviser described this as a BMW product at a Commodore price."
Advisers are being supported by the delivery of an extensive new range of illustrative software and promotional materials.
Aviva's Protectionfirst initiatives are available for subscribers to compare with other products on independent research software.
-ends-
Allan Griffiths is available for interview.
For further information please contact:
Simon Morgan
Group General Manager Public Affairs
tel: (03) 9829 8892
mobile: 0407 966 632
Notes to editors:
- Globally, Aviva Australia is part of Aviva plc, the world's fifth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78 billion, and more than A$624 billion of assets under management (as at 1 July 2004). The group has more than 56,000 employees and 30 million customers worldwide. Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78 billion, and more than A$624 billion of assets under management (as at 1 July 2004). The group has more than 56,000 employees and 30 million customers worldwide.
- The information in this document reflects Norwich Union Life Australia Limited's (NULAL) and NULIS Nominees (Australia) Limited's ('NULIS') understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. The information given in this document is of a general nature and has not taken into account the investment objectives, financial situation or particular needs of any particular person and it is not a substitute for professional advice. Applications to invest in a financial product issued by Aviva, or any of its related entities, must be made by completing the application form attached to the applicable Product Disclosure Statement ("PDS"). A PDS is available from Aviva or your financial adviser. Before making an investment decision on the basis of the information above, a prospective investor needs to consider, with or without the assistance of a professional adviser whether the information is appropriate in the light of their particular investment needs, objectives and financial circumstances.