AXA plans to revamp its protection software in order to introduce higher sums assured for its business protection offering.
Business protection carries large sums assured because cover is usually in five-year terms. But AXA’s software automatically raises premiums too high when computing large sums assured.
For example, if the sum assured was £400,000 the monthly premium would be around £50. But if the sum assured was raised to £800,000, the premium would automatically rise to £100. AXA wants to deliver a more ‘curved’ system that would charge, say, £80 for £800,000 sum assured.
Iain Mallon, director of protection marketing, says: ‘‘Higher sums assured mean higher premiums. But the higher the sum assured, the lower the risk, so it’s unfair to keep charging such high premiums.”