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Ageas Protect offers customers “G-Day” premium promise

Ageas Protect has launched its “G-day” protection promise, which vows to help customers who cannot be placed on risk immediately before the introduction of gender neutral pricing.

The provider will enter into a contract with customers who require further underwriting, GP reports or in cases where further medical evidence is required before offering terms, as opposed to the normal practice of entering into a contract after the terms have been offered.

Effectively, this means those who cannot be placed on risk immediately will be able to secure cover at pre-gender neutral pricing levels and will not be forced to pay a higher premium if they cannot secure cover before December 21, when gender neutral pricing begins.

The customer will be covered for accidental death benefit only, until the further evidence is provided. This must be provided by the end of February 2013 and the cover must be activated by the end of March.

Ageas secured legal advice before launching its gender neutral pricing plans.

In March 2011, the European Curt of Justice ruled that from December 21, 2012 insurers can no longer charge different premiums for men and women.

Ageas Protect head of marketing Andy Milburn says: “We are not into gimmicks, we want to make sure that what we do ahead of G-day is tangible and shows that we are doing everything we can to help intermediaries and their customers ahead of G-day.

“Our G-day protection promise will reassure protection intermediaries that customers in the Ageas Protect protection pipeline – whose cover cannot go on risk immediately – should face less hassle in the run-up to G-day on 21st December 2012.”

Highclere Financial Services partner Alan Lakey says: “This is very positive. A lot of comments have been made about the fact we are in the dark about what providers are going to do, how they will work post-gender and what will happen with pipelines.

“What Ageas has done is remove advisers’ concern. Anyone who is looking to get a client through on decent rates will probably use Ageas now, because of the sure-fire knowledge they will get a cheaper rate before rates increase. Other providers will have to follow this lead or risk losing sizeable market share.”

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Ageas are the first protection provider to clearly state how they will be treating ‘pipeline’ cases through the ‘G-day’ deadline, and demonstrates that they intend to ‘treat customers fairly’ and not to penalise people because additional medical information has been requested, and therefore will end up paying a higher premium through no fault of their own. This move is to be applauded and we watch with baited breath to see how other companies intend to respond!

  2. This is great news for everyone involved. Hopefully now that one provider has shown their hand and has attained legal permission to go down this route, the others will follow suit as it definitely makes the most sense. This way all providers can operate from a December 21st deadline and avoid the hassle of a price war and fluctuating rates whilst providers try and second guess eachother.

  3. Great work by Ageas! Leading the way, just like they did with Real Life Cover and offering IP premium reduction for health exclusions.

  4. And what happens in the event that it is not accpeted on standard rates and is therefore rated? Is the rating then applied to the pre G-Day quote?

    The article says ‘Ageas secured legal advice before launching its gender neutral pricing plans.’ Thats all very well but did they secure legal advice about going against the rules and dates that have been set?

  5. Bobby,

    There is no other change to our underwriting process. If a client is rated the rating will be applied to the pre 21/12 premium quoted.

    We secured very thorough detailed legal advice over a number of weeks before proceeding with this promise.

    If you have any further questions please free to email us!

  6. This seems quite a brave interpretation of the Guidelines and the relevant contract law provisions.I wonder who the legal advisers are ?

  7. Dear anonymous,

    If you want to know please let me know who you are and we can share the details!

    Why is brave seen as bad in our industry?

    Andy

  8. Matt Worthington 17th July 2012 at 4:30 pm

    Well said Andy, think this is a very good call by Ageas.

  9. Michael Smythe 19th July 2012 at 4:01 pm

    Ageas must be confident they can do this but before I get too relaxed about this GN thing will wait and see what the other insurers do…

    Someone on another post has just added this:

    Section 3.15 of HMT paper :

    Finally, we agree with those respondents who said that insurers should not attempt to put in place artificial structures before 21 December to circumvent the impact of the ECJ judgment after this date. Any activity of this nature would clearly be contrary to the spirit of the judgment and is unlikely to be looked upon favourably by the European Commission or the courts.

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