Aviva is set to launch a subscription-style insurance product, called AvivaPlus, in the UK to give greater choice and flexibility to customers.
The insurance giant said that AvivaPlus has been designed to address the concerns that consumers have with the industry and also to give them more control.
The new insurance product, claimed to be an industry-first, provides simple, flexible insurance cover, monthly payments without the need of an annual percentage rate (APR) or any charges to cancel or change.
Aviva said the new product also gives a renewal price guarantee for home and car insurance.
Considered to be key feature of AvivaPlus, renewal price guarantee aims at fixing price differences between new and existing customers. The insurance major said that the guarantee makes sure that existing customers are given the same or an even better price than an equivalent new customer at their upcoming renewal.
AvivaPlus will be launched over the next few weeks and will be available to new and existing UK customers who purchase directly from Aviva’s website and the company’s online customer portal MyAviva or from contact centers.
Customers will initially get to purchase the AvivaPlus home or car insurance, with three tiers of cover to enable them to select the level and price that suits their requirements.
Aviva said that it is easier for customers to monitor their level of cover and switch between the tiers. Customers, who purchase home and car insurance together, will be benefited from a single renewal date and also a multi-product discount.
The company said that the quote journey with the new product has been simplifed with less number of questions.
Aviva UK Insurance CEO Andy Briggs said: “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 (82%) of consumers as one of the most unfair practices of the insurance industry.”
Last month, the insurance giant signed a deal to buy a majority stake in Neos Ventures, a UK-based home insurance provider.