By: Luke Jones, Published on April 13, 2018 06:01 PM, Last Update on April 13, 2018 03:02 PM
Aviva Canada has made a move that is likely to appeal to many customers in British Columbia. The company has now embedded earthquake coverage into all of its home and tenant insurance policies.
Under normal circumstances, an insurer will offer earthquake coverage as an endorsement on top of home and tenants insurance. However, Aviva Canada has decided to bring it to all customers at a basic policy level. Moreover, the company says it is now analyzing whether to launch the solution in Quebec. Consider in that province 95% of homeowners do not have earthquake coverage, it seems as though Quebec would be an ideal platform.
“We’re meeting with experts in the region and our business development team to determine, even though interest is growing in Quebec, if the time is right now to be introducing the inclusion or to bring it in at a later date,” Aviva’s senior product manager of personal insurance, Chris Fowler, told Canadian Underwriter. “Part of it is incumbent on us to make Quebec aware that the risk is almost as strong as it is out there [in B.C.].”
With market penetration of just 3-4% in Quebec, customers are in need of earthquake coverage but may not neccesarily know it exists. Aviva’s solution of embedding protection into home and tenants insurance would solve that problem.
Aviva Canada calls its decision an “industry first” in its announcement post:
The offering for house, condominium, rented and manufactured homes will include:
“We’ve had customers and brokers telling us repeatedly that they want a simplified, easy-to-understand earthquake option for them,” Fowler said.