At last, AXA has entered the protection market. After nearly two years of planning, the provider has...
At last, AXA has entered the protection market. After nearly two years of planning, the provider has finally laid all its cards on the table. With its menu-based proposition, AXA is certainly covering all angles. In addition to the traditional protection offering, it is the first provider to include buildings and contents insurance within its proposition.
The inclusion of what is traditionally considered a general insurance product in a protection solution is unusual, but it is certainly interesting. AXA has taken full advantage of forthcoming Financial Services Authority regulation, which brings general insurance, private medical insurance and life products under one umbrella. Following the regulation of the mortgage market on 1 November, and with general insurance regulation fast approaching, the links between these sectors are closer than ever.
For customers, insurance is insurance. Most do not know the difference between general insurance and protection products, so hopefully the proposition will go some way to address this issue. AXA is taking no chances with its launch however, and its decision to roll out its menu-based product range to a select number of distribution partners is a cunning one. AXA is treading carefully in order to control demand. This is good thinking. Following the build up to its launch, AXA's every move will be scrutinised and falling at the last hurdle is not an option.
AXA's long-awaited entry is good news for the sector, particularly on the back of recent entrants, Bright Grey and Royal Liver. It has taken some time and careful planning, but the sector appears to be on an upward turn. But it is the advisers selling the products and the customers that buy them who will determine AXA's success. Lets hope the hard work pays off.
Angela Faherty, editor
