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Daily Insurance Industry News
Friday 26th of April 2019
August 20, 2009

Aviva trials postcode pricing for life insurance

by Gill Montia

Story link: Aviva trials postcode pricing for life insurance

Aviva trials postcode pricing for life insurance

Aviva may be adding a postcode element to its life insurance premiums.

The group is currently trialling the use of postcodes to illuminate the personal circumstances of its protection customers, having already introduced postcode weightings on its annuity products, along with several of its competitors.

Aviva’s protection director, Richard Verdin, says research by the group indicates that customers want more recognition of their personal circumstances to allow for fairer pricing.

He comments: “We have been using similar pricing techniques and expertise in house and motor insurance for years and added postcode as a rating factor on our annuities business in the second half of last year.”

According to the insurer, a postcode rating could vary a premium by up to 10%.

Critics argue that people living in deprived areas of the UK could be put off buying protection products altogether by postcode driven rate hikes.

 

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