Martin Lee @ Sg
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Aviva Re-enters the General Insurance Market

AVIVA, the world’s fifth largest insurance group, has re-entered the Asian general insurance market – five years after it left.

Back then, Aviva sold its general insurance business in Asia to Mitsui Sumitomo Insurance. The arm that was sold was renamed MSIG and there was a clause for Aviva not to compete in the general insurance market for five years.

The clause has ended and Aviva has decided to re-enter the general insurance market. Their preferred mode of distribution will be to allow clients to buy directly online.

aviva motor insuranceFor a start, the company will sell car insurance here first directly to its customers online, before quickly increasing its portfolio of products to include home and travel insurance.

Aviva has claimed its rates will be about seven per cent cheaper than its competitors on the average due to the cutting out of commissions and complex back office processes,

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5 comments
Bel, from Spain says 7 years ago

Hey, Jimmy,
Do you remember Bel, from Loyola U?

Reply
James Tan says 9 years ago

Hi Lion,

It also depends on the car you have. Mine’s Toyota so under AIG. More ex but recently I had to change the front windscreen. Luckily it provided for free replacement at the designated Borneo Motors workshop, no excess required and does not affect NCD… Hope this new one also does that… You never know when a rock or pebble chip will strike the windscreen.

Reply
    lioninvestor says 9 years ago

    Hi James,

    Yes, a lot of variables goes into the pricing of the premiums. Most motor plans would cover for the windscreen though some might have excess.

    Reply
Vincent Teo says 9 years ago

I am looking to renew my auto insurance for my 3 yr old car maturing come May. I am above 30 yrs old, have over 6 yrs of driving experience and 50% NCD.

The quotation I got from Aviva online was around S$660 with $500 excess. This is a no frill comprehensive cover, without NCD protector and repair works are limited to Aviva’s authorised workshop. Currently they have only Stars Auto and Comfort Delgro. You can also select additional cover such as replacement car, additional PA, additional radio, key replacement cover etc.

This is the lowest quote I receive so far as other insurance companies are quoting me between $800 to $1200. Maybe the missing layer of commission given to the agents allows Aviva to quote such competitive rate. I will suggest my friends to give Aviva a try.

Reply
    lioninvestor says 9 years ago

    Hi Vincent,

    that seems to be quite competitive. Even if you remove the 15% commission from the other providers, Aviva’s quote is still lower. The acid test would of course be whether Aviva can sustain low rates for a prolonged period.

    Reply
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