JEFF PRESTRIDGE: Aviva shows why loyalty a word that's currently missing from the insurance industry's lexicon
Insurer Aviva talks a very good story when it comes to doing the right thing by the customer.
Especially dapper chief executive Mark Wilson, who does not miss a chance to tell the world that he is tackling head on some of the issues that give insurance companies like his a thoroughly bad name.
Scandalous practices such as leaving loyal customers with either outdated and inferior cover, or policies that command far higher premiums than if they were bought as new.
Aviva – and most other insurers – are still guilty of anti-consumer behaviour
Anti-consumer behaviour that we highlighted last week (thank you for all your emails – see below) and which Aviva – and most other insurers – are still guilty of.
Alas the cuddly consumer-focused image that Wilson portrays is not necessarily reflected in what his customers tell us. They are not as happy as he claims they are. Far from it.
Take those who have private medical insurance with Aviva and who pay for their costly 'Healthier Solutions' cover annually rather than monthly.
This year, the renewal notices informing them of the premium for the year ahead have come as a bit of a shock with double digit increases the norm. Unsurprising, given rampaging inflation in the medical world, but painful on the pocket of those who like the assurance that they can avoid massive National Health Service queues by going private.
Yet those who have sought reasons from Wilson's crew for the premium changes have learnt that the increases do not just relate to soaring medical costs. They also include a hefty 5.3 per cent increase for annual payment by either direct debit or credit card.
The rise defies logic and has left enquiring policyholders more than a little angry. Understandably so.
Usually, those who pay for annual cover in monthly instalments rather than upfront contribute slightly more because the insurer has to wait a year before it collects all the premiums. Such a surcharge is acceptable, though of course we always recommend that readers try to avoid it by paying upfront if they can afford it.
If Aviva had removed this surcharge for customers who pay monthly, we would be singing Wilson's praises from the scarily high rooftop of our London offices.
The renewal notices for Aviva's private healthcare scheme this year were a bit of a shock with double digit increases the norm
But rather than even the premiums downwards, Aviva has evened them upwards in its favour by treating those who pay in one go as if they were receiving a discount to which they are no longer entitled. Unfair and wrong. They do not receive a discount, they pay the right price. It is monthly payers who are levied a surcharge.
Last week, I asked Wilson's public relations advisers to comment on this naughty move. Rather than put up their hands and admit what they had done was wrong, they came out with Wilson-like baloney: 'We believe this is fairer to customers and provides greater choice and flexibility for customers in how they pay their premiums to us.
'We have not sought to profit from the removal of this discount.'
Pull the other one. This is just another way of Aviva generating more profit from its customers. Healthier Solutions should be rebranded: 'Healthy Premium Increases.'
Just to ensure Aviva and Wilson do not believe we are just picking on them, rivals Admiral, Lloyds Banking Group, LV= and Saga are among those insurers singled out by readers for their disdainful treatment of loyal customers.
'I got my car insurance renewal notice from LV= for £670,' says Harold Hurst. 'But, by going online, the same policy would have cost £580. I got a better quote from another firm.
'When I was asked by LV= as to why I did not renew I said that it was because it treated loyal customers worse than new ones.'
John Todman, from Salisbury, is equally galled – by a 52 per cent premium increase that Saga wanted to apply to his car insurance. By shopping around online he got cover cheaper than what he was paying last year.
What irks him is that he has been with Saga since 1992 – loyalty, he says, which 'counts for nothing'.
Martin Smith has switched both his motor and home insurance as a result of big increases demanded by Admiral and Lloyds respectively. Unreasonable hikes, given he has not made any claims. Indeed he has never made a claim in 40 years of driving.
'I wonder which inconsiderate insurer will get my dosh next year?' he asks. 'Probably not those that received it this year.'
Loyalty is a word that is currently missing from the insurance industry's lexicon.
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