Aegon withdraws from individual protection market
It has been announced that over 400,000 Aegon customers will soon have their policies switched over to Royal London, following their purchase of Aegon’s UK individual protection book. This is due to Aegon’s decision to withdraw from the UK individual insurance market, instead focusing on their other products and services.
This will affect Aegon life insurance, critical illness cover and income protection customers across the UK. The changes will take effect next year (2024), following approval for a court approved VII transfer.
With value for money and good quality being a main consideration for most people, you will likely have done a lot of research for the right provider before choosing Aegon. You may now be understandably worried about having to switch to a new insurer.
What has been announced?
Aegon has announced that they want to put more focus into ‘retail and workplace platform activities’ and so are withdrawing from the UK insurance industry.
This means they can put a greater focus into their other products and services. Aegon are one of the UK’s biggest pensions and investment companies and so want to put more time into this side of the business. Customers with pension plans/pension savings won’t be affected as all changes relate solely to Aegon insurance products.
This means that current insurance policies will be transferred to Royal London in 2024 (pending court approval) and they will not accept new applications later than 11th April (4th April for online applications).
About Royal London
The Royal London Mutual Insurance Society Ltd is the biggest provider of investments, pensions and insurance policies in the UK.
They are an award-winning provider with a good customer record, having won awards such as Money Marketing Best Protection Provider 2022. They also score highly on independent review site Feefo, with a customer rating of 4.6 out of 5.0 stars.
Royal London is highly rated and so there may be some benefits of switching to them. We have an extensive guide to Royal London and their insurance policies, to help you better understand who they are.
Will I need to speak to Aegon about my policy?
You shouldn’t need to contact Aegon about your policy, as they should be able to make the changes to your policy for you. Your policy terms and pricing shouldn’t be affected but if you aren’t happy with having to switch to Royal London you can choose to cancel your policy.
Believe it or not, you always have the option to review your policy or cancel your cover at any point. It is always best to review your policy occasionally, so you can be certain it is still the right choice for you.
If you do wish to speak to Aegon about your policy you can contact their customer service at the following contact details:
Phone number: Tel. 03456 00 14 02
Opening hours: Monday to Friday 8.30am-5.30pm
Is Aegon still accepting insurance applications?
Aegon will not accept any new insurance applications as of 4th April 2023. Don’t worry, if you have recently applied you should still have 30 days to complete the application process. It is important to note that if your application process isn’t fully completed after this, the application will be closed.
You will then need to open a new application with another insurance provider. Luckily there are a wide range of insurers available in the UK, so you do have some options to choose from.
Other UK insurance providers include:
I’m an insurance adviser, what do I need to know?
This announcement from Aegon is going to have a big impact on the UK insurance industry, limiting options for customers and advisers moving forwards.
This has been a surprising announcement and if you have clients currently in the application process, here are some key dates to keep in mind.
- 4th April is the last day Aegon will accept online applications
- 11th April is the last day Aegon will accept paper applications
- 4th of May is the last day for cases on risk
It is best to act quickly for any new cases that need to be submitted, with deadlines being so tight.