Aviva Revamps Its Mid-Market Motor Trade and Property Owners Products to Address Underinsurance, Sustainability, and EV Risks
Insurance News United Kingdom : Know your Policy details and benefits.
Aviva has announced significant enhancements to its regionally traded mid-market motor trade and property owners’ insurance products, reflecting its commitment to addressing critical issues such as underinsurance, sustainability, and electric vehicle (EV) risks. The latest improvements aim to provide more comprehensive coverage, simplify policy structures, and support brokers and clients in managing emerging risks effectively.
Strengthening Core Protection with All-in-One Solutions
In response to the increasing challenges faced by UK commercial clients, Aviva has expanded its core protection offerings. The company has increased limits and embedded previously optional covers into standard policies, including Aviva life assurance, Aviva funeral plans, and Aviva wellbeing products, to offer a more holistic protection package.
Tackling the Underinsurance Challenge
Rising construction costs, labour shortages, and inflation have widened the gap between sums insured and actual rebuild values, leading to heightened underinsurance concerns. To combat this, Aviva has introduced new valuation mechanisms, including an updated RICS waiver, and now waives additional premiums arising from building valuations until the next renewal.
Additionally, the company has incorporated Aviva relevant life benefits into its property and motor trade policies, providing vital protection for business owners and employees against underinsurance risks.
Environmental and EV-Related Cover Enhancements
As part of its sustainability strategy, Aviva has introduced new covers to support environmental responsibility and faster recovery post-claims. These include:
- A 10% contribution of the claim cost to environmentally friendly rebuilds or repairs
- Up to £10,000 for pollution cleanup and contamination removal
- Up to £10,000 for recyclable materials management after a claim
Furthermore, Aviva has enhanced cover for hybrid and electric vehicles, including charging points, cables, connectors, and high-voltage batteries, reflecting its focus on Aviva digital GP and Aviva GP services to support electric vehicle infrastructure.
Focused Support for Property Owners and Landlords
The revamped property owners’ product features a new £10,000 business interruption benefit for loss of income from renewable energy installations, along with extended protection for fire and rescue service charges, and higher limits for clearing property left by former tenants. Clearer language aims to improve broker and customer understanding of coverage levels.
Over 50s and Multi-Asset Investment Options
Aviva’s over 50s plans and Aviva multi-asset investment solutions are now more aligned with the evolving needs of clients, offering flexible options that complement its insurance products like Aviva funeral plans and Aviva wellbeing. These offerings ensure clients can plan for the future with added peace of mind.
Claims Experience Driving Innovation
The claims experience has shown a rise in severity for commercial property and motor trade claims, driven by inflation, longer repair times, and higher repair costs. The increase in hybrid and electric vehicle claims, particularly around charging points and high-voltage batteries, has led Aviva to tighten policy wording and clarify coverage for EV-related assets.
By embedding more cover as standard and simplifying policy structures, Aviva aims to reduce disputes and enable faster claims recovery. The company’s focus on Aviva solus offerings and digital solutions like Aviva digital GP ensures clients receive prompt, tailored support during claims.
In summary, Aviva’s recent product revamp underscores its commitment to addressing underinsurance, sustainability, and EV risks while providing comprehensive protection through innovative solutions like Aviva relevant life, Aviva wellbeing, and multi-asset investments. These enhancements are set to position Aviva as a leader in the competitive UK insurance market, delivering value and certainty for brokers and clients alike.
