26 June 2007
The imminent merger between the AA and SAGA needs to bring positive benefits for the over-50s car insurance market, uSwitch has advised.
The 6.2 billion merger is set to make the group a "dominant player" in the insurance market, bringing together an estimated two million existing car insurance customers, uSwitch has said.
However, it has expressed concern that the merger may scale down or "dilute" some of the car insurance products currently offered by SAGA for the over 50s market, historically underrepresented in the insurance industry.
Aron Thompson, Head of Insurance at the independent online price comparison and switching service, said: "There are very few providers offering insurance to this group and, for some time, SAGA has very much been the dominant 'specialist' in this market for some time."
He added: "The recent launch of intune, the new financial services brand from Help the Aged, has presented some stiff competition.
"While the motor policies offered by intune and SAGA are very similar, intune feeds all profits straight back to the Help the Aged charity, which will no doubt appeal to this audience.
"We hope that this newly created powerhouse in the insurance industry is committed to providing good quality products and keeping premiums competitive for everyone."
According to a recent report, one in four people over 75 were unsuccessful in even getting a quotation for their motor insurance.
© 2008 Adfero Ltd
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