Here’s an interesting approach from HSBC bank, who are bundling up various insurance products in one flexible package deal. It is undeniably an attractive price, given that an entire family can get life cover, plus gadgets and home emergency all for under £20 a month. The Life cover does have a cap at age 50 however, plus max payout is 15K, which is not enough for someone who has a family, but as the marketing copy explains, this is a Starter Life policy.
You get the flexibility of chopping and changing, but in the long run maybe PAYG insurance on car insurance, plus breakdown, gadgets, travel and home contents cover will win the consumer war?
As regards this offer, the average family will still want things like healthcare, bicycles, dental cover, commuting or gap/business insurance for their vehicle(s) and perhaps mobile phone insurance, none of which are on the HSBC menu.
There can be no doubt that true choice is the market is coming, via Alexa and other voice-activated devices. The question is can insurers move fast enough to respond to shifting consumer demands?
HSBC UK is launching ‘Select and Cover’, a new flexible insurance product that offers seven switchable covers in one subscription. HSBC UK customers can choose a minimum of three of the following types of cover: Mobile Phone, Gadget, Home Emergency, Life, Excess Protection, Motor Breakdown and Travel from £19.50 per month.
If their needs or circumstances change, they can add and remove one option during the year, as long as they maintain a minimum of three, and change all their options once a year on the policy anniversary. Combining covers can reduce the aggregated cost, thereby saving customers money when compared to purchasing individual policies.
Select and Cover is a pay monthly service and customers can cancel at any time without penalty. Each policy covers the policy holder, their spouse, domestic or civil partner and their children.
Mark Hussein CEO of HSBC Insurance UK said: “Select and Cover will redefine the way our customers buy insurance. Its subscription-based model reflects our aspiration to provide customers with innovative ways to both buy and use our products. Select and Cover complements our existing products by broadening our range, enhancing the speed and convenience of the application process making insurance more appealing and accessible to customers. Its rationale is very much in keeping with our business strategy to improve access to insurance and enhance our digital capabilities, enabling us to evolve and grow within the changing insurance landscape.”
Market research conducted by HSBC UK showed convenience and flexibility were the two main drivers for insurance customers and identified a strong desire for subscription type services instead of fixed contracts.
Commenting on this, Tom Cheesewright, leading futurist and author of ‘High Frequency Change’ said: “Our lives are full of choices now, so we naturally want to explore all our options. But we’re restricted by the friction that builds up around our lives: long term agreements for housing, transport, connectivity, and insurance.
“Making insurance cover more flexible reduces this friction and allows us to make the choices we want to make, and respond to the opportunities life sends our way.”
Select and Cover is available online to the six million HSBC UK customers who are registered for online banking.
More information https://www.hsbc.co.uk/insurance/products/select-and-cover/