Allianz to go average free
Underinsurance is a huge problem in the UK with an estimated 40% of small business not adequatly insured. If your property is underinsured, it is not just the maximum amount that your insurer will pay for a claim that will be inadequate, but partial losses will be punished by the "average" clause. This means that any claim will be recuced proportionatly to the amount of the underinsurance.
It's great to see an insurer taking a refreshing approach to this, with Allianz today announcing that it is making all of its policies designed for small businesses "average free". This takes much of the fear of underinsurance away from the insurance buying process - the insurer will still limit any claims to the amount insured, but any partial loss claims will not be subject to a reduction in value
Well done, Allianz for simplyfing a complex area and making this easier for the insurance buying public.