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Private Client Report | September 2014
Aviva Distinct
A
viva Distinct ranked 13th overall, scoring well
below par in every area. Underwriting was a
particular weakness.
On new business, Aviva Distinct ranked
13th with 71%, four points less than the market average.
Comment split 11:10 positive, plus three mixed. Many
reported swift, smooth service. ‘Aviva Distinct have a
great turnaround when we submit new business,’ said a
manager at a South Western firm. ‘They are always very
helpful, pushing things through quickly when time is of
the essence.’
But almost as many seemed to struggle to make contact
and complained of slow responses to enquiries: ‘useless at
getting back to you’; ‘slow and the least likely to provide
a quotation in time’; ‘Aviva are hard work’. Brokers got
passed around. ‘Their system is unclear and they can take
a while to refer back with appropriate information,’ said
an East Midlands broker. There was too much bureaucracy and inefficiency. ‘Aviva’s approach of filling in forms
Aviva Distinct gave a mediocre performance,
with underwriting a notable weakness
New Business
Underwriting
Documentation
Cover
Renewals
Claims Handling
Overall (Weighted)
60%
70%
80%
90%
Aviva Distinct
Rank/ 15
Score
+/– Avg
New Business
13th
71%
-4%
Underwriting
13th
66%
-11%
Documentation
11th
70%
-5%
Cover
11th
71%
-6%
Renewals
14th
69%
-6%
Claims Handling
12th
71%
-6%
Overall (Weighted)
13th
70%
-6%
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100%
and faxing is long-winded and time-consuming,’ said a
partner at a South Eastern firm. Asked which insurer had
the best electronic trading platform for HNW risks, only
one respondent said Aviva Distinct.
On underwriters, Aviva Distinct scored 66%, 11 points
below par: 13th again. Comment was 12:23 negative. A
minority gave great reviews: ‘always ready to help’; ‘real
experts in their field’; ‘very flexible with terms’; ‘easy to
deal with and expert’; ‘a joy to work with and open to
trading’. A manager at a small South Western firm remarked: ‘Aviva Distinct take a very sensible underwriting
view when the risk is not straightforward.’
The majority, however, were far from impressed: ‘inexperienced’; ‘computer says no’; ‘reading from a script’;
‘very second rate’; ‘too short-sighted’; ‘can’t do mentality’; ‘too rigid in their outlook’; ‘need to refer’; ‘not
very sound technically’; ‘drive me to despair sometimes’;
‘Aviva Distinct underwriters appear to be call centre
staff ’.
Many did seem to be standard personal lines underwriters with little concept of HNW realities. ‘Aviva do
not seem to really understand the requirements of a true
high net worth client,’ said a City-based account exec.
‘Aviva underwriters show little understanding of true
HNW risks,’ agreed a manager at a national firm. ‘This
is demonstrated by their lack of flexibility for even the
simplest cover extension. You often have to refer it three
or four times to get a sensible answer.’
When we asked respondents their top private client underwriting professional, only one named anyone
employed at Aviva Distinct. ‘Aviva Distinct’s current attitude and capacity in relation to higher-end HNW risks
falls way short of their advertised ability to handle such
cases,’ remarked a North Western account exec.
On policy documentation, Aviva Distinct scored 70%
– five points below par – to rank 11th. Comment split
9:11 negative, plus four mixed. Some were satisfied:
‘well-presented’; ‘always clear and well laid-out’; ‘comes
in a professional-looking folder’; ‘impressive, professional-looking documentation, arriving within days’.
Hard copies usually arrived within three working days,
it seemed, though Aviva would email them on request.
‘Documentation from Aviva is instant and error-free,’
said a manager at a North Western firm, ‘with original
documentation issued and dispatched immediately after.’
Yet most rubbished Aviva Distinct for delays, mistakes
and general poor quality: ‘really slow to deliver’; ‘take at
least seven days’; ‘consistently fail to arrive’; ‘they can’t
always send a pdf so it can take a week before receiving
them’; ‘look tacky’; ‘poor and inaccurate’; ‘often contain
errors or omissions;’ ‘they couldn’t even show an excess
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September 2014 | Private Client Report
National
l
Internationa
Aviva Distinct’s respondent breakdown
was typical of the broker market
Con
con solida
so
to
ownlidator-r/
ed
Small
independent
Large
independent
Mid-sized
independent
Aviva Distinct
Number
Percent
Small independent
44
37%
Mid-sized independent
31
26%
Large independent firm
21
18%
Consolidator/ consolidator-owned
7
6%
National firm
12
10%
International firm
4
3%
Total
119
100%
on the policy schedule’; ‘lapses of concentration cause
inaccuracies and delays’.
On quality of cover, Aviva Distinct ranked 11th again,
with 71%, trailing the market average by six points. Comment was 10:11 negative plus one mixed. Some saw Distinct as a well-priced, transparently-worded product that
worked perfectly well for the more straightforward private
client risks. ‘Comprehensive cover with high limits,’ said
an account exec at a mid-sized firm. ‘Aviva Distinct 75
is pitched brilliantly for those clients treading the HNW
qualifying line,’ said a manager at a Northern Irish firm.
‘It offers a really competitive price with a high marque
product.’
Others found Distinct rather musty: ‘well out of date’;
‘may need revitalising’. The wording had been upgraded,
said a North Western account exec, but it still fell way
short of the market leaders. ‘Aviva simply refuse to be
creative or flexible with their cover,’ said a broker in
Wales. Distinct lacked the breadth required by true HNW
clients, said an account exec at an international firm. For
the owner of an Eastern Counties firm, it was ‘really a
mid net worth proposition’.
On renewals, Aviva Distinct scored 69%, six points less
than average, for 14th place. Comment split 7:9 negative, plus two mixed. Aviva could be quite pliable on
rates: ‘normally flexible’; ‘helpful with renewal premium
discount’; ‘usually able to assist to retain the policyholder’; ‘contact us early and are flexible and fair in negotiations’; ‘if you are building a book with Aviva, they will
trade’. For some, renewals docs arrived at least a month
in advance. ‘Documents always arrive promptly,’ said an
account exec in the South West, ‘and premium increases
are reasonable.’
For others, Aviva was way off the pace: ‘give the shortest period’; ‘slow at inviting renewals’; ‘when amended
renewals are required, Aviva can be slow to respond’.
Aviva could also be ‘very non-negotiable’, seeking to apply ‘daft increases’ on clean risks. ‘Aviva seem to use any
excuse to impose high premium increases,’ said a team
leader at a small Eastern Counties firm. ‘They are not
flexible and do not seem very bothered about retaining
HNW business, even when risks have been with them for
many years.’ Two respondents said the gap in premiums
between Aviva Distinct and Chubb Masterpiece was
diminishing.
Hefty premium hikes after claims were a particular
problem, said a North Western account exec – though after
referral to senior underwriters, Aviva tended to back down.
‘This added workload isn’t cost effective,’ she said, ‘especially when, during subsequent enquiries, it transpires such
matters are not addressed internally prior to documents
being issued. The individual underwriter handling the case
has no authority when challenged and has a distinct inability to appreciate the wider picture – i.e. a long-standing
client with one claim in five years and supporting commercial business.’
As for claims handling, Aviva Distinct ranked 12th with
71%, six points below par. Comment was 9:4 positive.
Clients getting ‘passed around the Aviva empire’ was a
worry, said a manager at a London firm. Process sometimes seemed the priority. ‘Aviva always look to draw out
a claim,’ said a broker in Wales, ‘and often end up with so
many different parties involved that it elongates the process
unnecessarily.’ In fairness, others reported a ‘superb’ claims
service from Aviva. The Distinct claims team drew praise
for their energy, contact with brokers and willingness to
share information: ‘speedy’; ‘efficient’; ‘on top of their u
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48
Private Client Report | September 2014
game’. Aviva had dealt with a large fire claim ‘very efficiently’, said an account executive at one large independent, ‘appointing a specialist loss adjuster who has kept a
demanding customer very happy’.
When we asked respondents which insurer had done
most during the past year to help build their firm’s private
client book, 11 – of 119 who did business with it – went
for Aviva Distinct. ‘They offer a lot of help with training
my team,’ said a City-based manager at a large independent firm. Others cited approachability, competitive rates
and some help with account development.
Asked their overall market leader, seven more said Aviva
Distinct. ‘They offer excellent cover at competitive prices,’
said a South Western account exec, ‘with a very good
claims service.’ With rates rising, said a West Midlands broker, clients paying £2,000-plus premiums to Hiscox and
Chubb had been asking to re-broke – and Oak Underwriting and Aviva Distinct had been picking up the business.
The Judgment
Overall then, Aviva Distinct scored 70% – six points below
average – to rank 13th. Core service comment totalled
58:68 negative, plus ten mixed or neutral.
On new business, some brokers got a quick, straightforward turnaround from Aviva, but just as many had a
thoroughly frustrating time here. Distinct had a core of
able HNW underwriters, but brokers more often found
themselves talking to low-wattage script-readers with little
real understanding of the risks they were being asked to
cover. Referrals to grown-ups were frequent. Documentation seemed smartly presented, but many complained of
silly omissions, mistakes and delays. Renewals performance
varied. For favoured brokers, Aviva sent its papers over
early and could be flexible on rates where required. For
others, it left things late and then demanded steep rises,
forcing either a time-consuming escalation or a re-broke.
The Aviva Distinct wording was dated and unimaginative – but it was also reasonably broad, clear and competitively priced. Claims handling wasn’t too bad either.
Aviva sometimes took the long way round, but its Distinct
handlers were well-organised, maintained good contact
and usually did a fine job.
Aviva Distinct’s performance on underwriting drew a lot
of critical comments
100%
Aviva Distinct
Positive
Mixed
Negative
New Business
46%
13%
42%
Underwriting
34%
0%
66%
Documentation
38%
17%
46%
Quality of Cover
45%
5%
50%
Renewals
39%
11%
50%
Claims Handling
69%
0%
31%
Total Core Comments 43%
7%
50%
80%
60%
40%
20%
0%
Underwriting
Documents
Quality
Renewals
Claims
Total
Core
New New
Business
Underwriting
Documentation
Quality
of Cover
Renewals
Claims
Handling
Total
Comments
Business
of Cover
Negative
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Mixed
Handling
Comments
Positive
49
September 2014 | Private Client Report
Aviva is no private client specialist, Distinct no marketleading proposition. For key relationship brokers, Distinct
offered an effective, well-priced solution to the needs of
larger MNW and smaller HNW clients. Brokers on Aviva’s
periphery, however, will find Oak, Sterling or Aqua far
easier to deal with and just as affordable.
www.aviva.co.uk/distinct
The UK’s largest general insurer, Aviva focuses mainly on small
business risks and personal lines. Distinct, Aviva’s range of
covers for high-value home and contents, motor and travel,
is available only through brokers. Cover options include art,
antiques and collectables, small craft and second homes in
France, Spain, Portugal and the Republic of Ireland.
Distinct Home 75 covers sums insured of £75,000 £150,000, while Distinct Home 150 is for sums insured over
£150,000. Distinct Home policyholders benefit from complimentary home security visits, a risk helpline, discounted professional valuations and a dedicated claims team.
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