Mutual insurer LV= has completed a deal with Help the Aged, the UK’s leading charity for older people, to offer personal lines insurance primarily to the over 50s market, which numbers over 20.3 million people.
The insurance products will be branded intune - Help the Aged’s newly created subsidiary and financial services retail brand. intune was set up to operate on a strictly commercial footing, following Help the Aged's plans to increase its sales of financial services, but will plough profits back into the charity.
The arrangement is for five years with a view to a longer-term strategic partnership.
Mike Rogers, Group Chief Executive of LV= says: "I am delighted that Help the Aged has chosen LV= as a key business partner to provide their new brand general insurance products. This is a very exciting partnership and together we are well placed to compete successfully in this highly competitive market. As a mutual insurer, our aim is to combine the best of traditional mutual values with market leading performance, and we share many of the same values and have a natural affinity with Help the Aged.”
LV= underwrites travel insurance policies for intune. LV= will work closely with travel insurance administrator Mondial UK, who will handle sales, service and claims on travel insurance policies. The products will be sold by telephone, via a dedicated call centre and over the internet. With people over 50 representing one of the fastest growing sectors of web users, a strong focus will be placed on the internet channel.
Anne Grahamslaw, Managing Director of intune comments: "We chose LV= after an extensive tender process because it offered the best commercial returns, but also shared our values. LV= was willing to invest in the relationship and work closely with us on product and service development. Our choice of a respected mutual also resonates with our charity connection, our ethics and with the values of our customers. Mature people now travel more widely and frequently than the younger age groups but over 90% of travel insurance policies across the board still impose an upper age limit. Almost a third of policies even refuse to cover the 9.6 million people in the UK aged 65 and over, rising to 75% declining cover to those over 75 years of age. Older people are now enjoying double the retirement life-span of their counterparts 50 years ago and intune can help people make the most of their life and their finances as they get older and their financial priorities change.”
intune is entering a market with huge revenue potential. Every 40 seconds someone in Britain turns 50, and there are 20.3 million people aged 50 years and over, about a third of the total UK population. The number of people aged 65 years and over is expected to rise by nearly 60% in the next 25 years – from 9.6 million in 2005 to over 15 million in 2031. The over 50s have a combined wealth of £560bn and a spending power of £175bn, making up 40% of all consumer spending.
As a consequence, the over 50s holiday more widely than younger age groups, and for longer at a time - more than 121,000 trips of 3-6 months have been taken by this age group over the last year.
intune provides fuss-free and value-for-money financial products and services which are particularly tailored to the needs of today’s over 50s and has been created to help people make the most of their money at a time when they need genuine, trusted and useful advice.
intune is a wholly owned subsidiary of Help the Aged, which has over 10 years' experience in financial services. This also means that profits go towards the work the Charity is undertaking to free disadvantaged older people from poverty, isolation and neglect.
All intune call centres are UK-based and travel policies have no upper age limit, which means that customers are treated as individuals, regardless of their age.
Intune also offers over 50 life cover from American Life, Health Cash cover from Paycare , Accident cash cover from UNAT DIRECT, and long term care advice from NHFA.
Travel insurance: News update: May 2007
