Advisers have expressed their dismay at Aviva’s decision to withdraw AIG’s entire expatriate cover product including all pipeline applications with immediate effect.
Earlier this week, Health & Protection exclusively revealed Aviva had decided to close the product to new business this week which includes cases where terms have been issued and not yet taken up.
In early May at Health & Protection’s third annual IPMI Summit, Andrew Wilkinson, director of Moneysworth, told delegates the prospect of AIG’s protection cover for British expats disappearing following Aviva’s acquisition of its rival insurer was “concerning”.
Wilkinson said the the $64m question was whether Aviva will keep the AIG product and terms for expats or ditch them following finalisation of its £453m acquisition.
Sorely missed
And when contacted by Health & Protection, other advisers have expressed their dismay at Aviva’s decision to withdraw AIG’s expat cover.
Richard Brough, sales manager at The Insurance Surgery, said: “I could perhaps understand if prior notice was given and existing clients in the process were still accommodated, but to abruptly cease operations is harsh.
“We personally have two clients currently obtaining expat cover, one of whom is based in Taiwan. We’ve been working with him for the past couple of months and finally secured a medical screening on the 27th. It is disheartening to now have to break this news to him.
“The expat proposition was a significant advantage for AIG. It was unique among mainstream insurers, with a streamlined process and substantial support from the AIG team, leading to many positive customer outcomes.
“This service will be sorely missed by us at The Insurance Surgery and our prospective clients.
“In summary, this decision does not reflect well on AIG’s acquisition in the eyes of clients, brokers, and advisors. I urge them to reconsider.”
Missing out on an option
Other advisers told Health & Protection they were concerned that customers were losing out on another option.
Naomi Greatorex, owner of Heath Protection Solutions, (pictured) said: “I think it just means that the market is really missing out on having an option to offer non domicile clients and expats the opportunity to take out insurance to cover their UK liabilities.
“So it’s a massive loss in the market because now you’d be looking at Lombard International or Canada Life – so you haven’t got that additional option where before you did.”
Alan Knowles, co-managing director at Cura Financial Services, echoed those sentiments.
“Sadly, this is another example of the protection market consolidating and another big blow for access to insurance,” Knowles told Health & Protection.
“Expats and non-doms with UK liabilities will now be left to source insurance in their current country (if available) or through more expensive and less robust international routes.
“We can only hope that another UK insurer sees the opportunity and moves to help customers in these circumstances.”