Article date: 9 June 2010
But more could be done, says Aviva
Aviva, the UK’s largest insurance company congratulates financial advisers for playing a pivotal role in helping to ensure families have some form of protection, by signing up customers to Aviva’s free life cover for new parent’s initiative.
However, Aviva is warning that advisers could be missing a trick, as whilst registrations via advisers account for 29% of all parents registered, there is still a huge opportunity for advisers to open the conversation and raise awareness of the importance of protecting themselves and their family. The remaining 71% of registrations come from customers applying direct to Aviva, or through bank and building societies partners. Despite this figure, almost half of the sales of new family protection policies which have come as a result of free life cover come via financial advisers.
To date, Aviva has provided over £50 million in free cover to new parents, with registrations via advisers accountable for 29%, which equates to c£14 million of this rapidly growing market.
Every year 700,000 babies are born in the UK, and over 36,000 people die leaving financial dependents. 56% of the UK’s five million families do not have adequate protection.
New parents cover from Aviva was launched in July 2009. It provides £10,000 free life cover per parent per child, up to the child’s first birthday. The cover is simple to register for, and recognises that new parents dealing with the increased financial responsibilities that a new baby brings are looking for peace of mind.
Louise Colley, head of protection at Aviva, said: “It’s fantastic that 29% of registrations for our free cover came through Financial Advisers. We know that this is proving to be a real foot in the door for advisers, and recognise the importance of this as a conversation starter. All new parents want to know that their children will be provided for should the worst happen, and registering for a years’ worth of free cover with Aviva makes it really simple for them.
“We really want to encourage advisers to use this as an opportunity to stimulate the market to reduce the protection gap, even if this does not long term result in a sale for Aviva. We all recognise the huge scale of the protection gap and hope new parents cover provides advisers with a new reason to have the conversation about protection and be able to approach the delicate subject of supporting customer’s families should the worst happen.”
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Notes to editors:
- Aviva is the world’s fifth largest* insurance group, serving 53 million customers across Europe, North America and Asia Pacific
- Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £45.1 billion and funds under management of £379 billion at 31 December 2009
- We are the largest insurance services provider in the UK and one of the leading providers of life and pensions products in Europe
- Aviva’s life and pensions business in the UK has a total market share of 10.3%** and a leading position in its key markets of savings, protection and annuities.
- The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive
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* based on gross worldwide premiums at 31 December 2008
** Source: ABI data released March 2010