It recently announced that it was investing heavily in its claims division 

Aviva has launched a new subscription-based insurance product which it claims is an “industry first” to address price disparity.

It addresses customer concerns and offers them more autonomy by making it easy for them to change their cover as often as they want without incurring charges, just like a subscription service.

The product named AvivaPlus will be rolled out over the next few weeks for home and car insurance initially and available to new as well as existing customers who buy directly from the company, its online portal or contact centres.

Its chief executive Andy Briggs referred to the product as a “reinvention of insurance.”

Milestone

Meanwhile Blair Turnbull, managing director at Aviva UK digital added: “AvivaPlus is a significant milestone in our ongoing digital strategy.

“It’s a continuation of our journey and it represents a step change in how we’ll offer products to our customers in future.”

He 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.”

Level playing field

Avivaplus infographic

The product “offers simple, flexible insurance cover, monthly payments without APR” according to Aviva. 

And there will be a renewal price guarantee for home and car insurance to ensure that existing customers are offered the same or a better price than a new customer.

It also promises an easier customer journey with a reduced question set, as well as simpler claims processes and language.

The firm hopes to create a “level playing field for new and existing customers.”

Briggs added: “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.”

Research from October 2018 by Censuswide conducted for Aviva found 82% of consumers felt price disparity was “one of the most unfair practices of the insurance industry.”

Three tiers

The cover has three tiers which enables customers to choose the level and price to fit their needs.

The products have also been simplified, and it is easier for customers to check their level of cover and switch between the tiers.

Other key benefits include a quick claims decision on electrical items under £2,000 and an option to pay monthly with no interest.

And through the firm’s commitment and investment in innovation, the product is hoped to make things more convenient, easier and quicker for its customers.

Aviva recently announced that it was investing heavily in its claims division to pioneer the supposed “Lemonade model” of instant claims payment into the mainstream.

And last month the firm partnered with insurtech Neos to overhaul escape of water claims using smart home tech.