View more on these topics

Aviva develops PPI alternative

Aviva has developed an alternative payment protection insurance product in a bid to distance its offering from the damaged reputation of the PPI sector.

The product has been branded as short-term income protection and Aviva says it has kept the FSA informed of the product’s development to ensure it is compliant.

It will offer cover option to pay out in the event of accident, sickness, unemployment, and/or a fixed amount of life cover.

Product features such as waiting periods and the level of benefit can be changed at any time and the policy is annually renewable. Aviva will launch the product through Leeds Building Society call centres and a number of other distribution partners in May and will review at a later stage whether it will be offered through IFAs.

An Aviva spokesman says: “We are continuously improving our products and our new Stip product has been designed to reflect the changing nature of the market.”

Last week the British Bankers’ Association lost a judicial review against the FSA and the Financial Ombudsman Service challenging PPI redress measures.

Plan Money director Peter Chadborn says: “This seems like a viable product because PPI would not have sold in the levels that it did if the concept was not right. The issues arose as a result of the way PPI was sold and this simplified income protection product could work where full-blown income protection is not an option.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. If you want the latest news on PPI or think you may have been mis sold then visit http://www.edenclaims.co.uk theyre excellent

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com