Protection Guru founder Ian McKenna has hoped Aviva's deal to buy AIG’s protection business does not come to pass, saying too many insurers have been lost.
Speaking at the Protection Guru Awards 2023 at the St Pancras Renaissance Hotel today (October 6), McKenna told the crowd that while he admires Aviva, he hopes “for the sake of the industry” that the deal to buy AIG does not go through.
He added: “We have lost too many insurers over the years and advisers have said it is important to have diversity and choice. So personally I hope the deal does not happen.”
Last month (September 25), Aviva revealed it would buy the UK protection business of AIG for a consideration of £460mn.
At the time, Aviva chief executive Amanda Blanc explained the acquisition strengthened the company's prospects in the "highly attractive UK protection market" and continued Aviva’s progress in repositioning itself towards capital-light growth.
AIG Life UK provides a full suite of individual and group protection products, with 1.3mn individual protection customers and 1.4mn group protection members.
Providers leave market
Several providers have sold their protection business in recent years.
For example in May Canada Life sold its UK individual protection business to Countrywide Assurance.
It came after the company announced it would leave the protection space in November, a move which advisers called “disappointing”.
At the time, Canada Life said following a review of its onshore individual protection business, it would no longer accept applications for onshore individual protection products.
Then in April, Royal London, the UK’s largest life, pensions and investment mutual, announced it would buy the individual protection book of Aegon UK.
The move saw Royal London expand its protection customer base to 1.3mn.
Meanwhile Old Mutual sold its protection arm to SwissRe's subsidiary ReAssure in 2019 as part of that company's withdrawal from the UK market, which included the demerger of Old Mutual Wealth which has since rebranded as Quilter.
Insurers including Scottish Provident, Bupa, and Axa have also closed their individual protection arms in the UK.
Aviva has been contacted for comment.
amy.austin@ft.com
