This new breed of ASU product promises to be the antidote to the problems that have plagued the product in recent years.
Because policies are underwritten at the point of sale the premium and the cover is based on each policyholder’s own individual risk profile and as a result many policyholders will experience reduced premiums. This move brings ASU in line with the way in which all other personal lines insurance products are underwritten.
Home Protector provides cover specifically for mortgage or rent payments while Income Protector is a short term income protection policy that allows customers to protect a percentage of their income.
With an infinite number of options available to tailor the product to an individual’s risk, the two new ASU policies have been designed to be sold on an advised basis through a broker or intermediary. With such flexibility, customers can be assured that the policy accurately reflects their own individual needs and circumstances.
Managing director Nigel Payne commented: “We are very excited to be the first to bring this new breed of ASU to market. Our Home Protector and Income Protector products remove the ambiguity that has plagued ASU.
“Not just age banded, but underwritten at the point of sale, customers can now be assured that the policy they have bought is tailored specifically for them and that all valid claims will be paid. We believe this innovation responds to some major criticisms that have been laid at the door of PPI products by the Competition Commission.
“The launch of these two products is very much the first stage in what will be a continual evolution of our point of sale proposition. The rating engine can take an infinite amount of variables into consideration, and these will be added to as customer requirements change or develop.”
Because the products are annually renewable and rated at the point of sale this new breed of ASU is also likely to reduce the need for the sudden price hikes that have contributed to severely damaging the reputation of these products.
Despite the sophistication of the rating engine the sales process for brokers will remain very simple. Home Protector covers a maximum monthly benefit of 120% of mortgage or rental payments or up to £3000 (whichever is the lowest), and Income Protector covers up to £3000 of income. ASU is available for 12 months, with the option to increase AS benefit to 24 months.
