Aviva has launched a Group Life Master Trust aimed at offering protection solutions to small and medium-sized enterprises.
The master trust is designed to provide a more affordable and simplified process to allow businesses to offer their employees life insurance.
According to Aviva, the master trust offering will allow Aviva Group Protection to write multiple group life business under a single trust.
A company agrees to join the master trust and their employees are then covered by the scheme.
The product is aimed at creating simplicity and ease of access to protection products for small and medium enterprise businesses because it is designed to remove time and cost from the smaller employers by providing a ready made solution.
Aviva’s new trust will be available on both registered and excepted group life policies.
This means it can be used to offer life insurance to employees of all levels, including employees not covered under a standard registered group life arrangement.
Additionally, the master trust solution is also available through the group protection online system for any group life policies that cover between three and 100 lives.
Aviva’s Group Life Master Trust is designed for multiple employers, but delivered under a single trust arrangement and governed by the external independent trustee company Pitmans Trustees.
Steve Bridger, managing director for group protection at Aviva, said: “Cost and resources can be a real barrier for smaller companies who want to offer their staff workplace benefits.
“Using a master trust can reduce the cost and the time spent setting up a benefit and managing it in the future.
“Through auto-enrolment, hundreds of thousands of companies are in the middle of setting up their workplace pension schemes. This may be spurring business owners to take a look at what other benefits they can offer their employees at the same time.”
“When creating this solution it was really important that we built something that employers could use with all their staff – from CEO to intern.
“Aviva is the first to cover an Excepted Group Life policy under the Master Trust solution and I think many will see real value in our offering.”
Alan Lakey, partner at Highclere Financial Services in Hemel Hempstead, said it is pleasing to see the absorption of Friends Life has allowed Aviva to expand its range of offerings.
Mr Lakey said: “Most group life insurers such as Canada Life, Legal & General and Ellipse already offer master trust arrangements and this move enables Aviva to make up ground.
“It is noticeable how, in recent weeks, Aviva has shown a determination to expand its protection net and this is to be welcomed.”