Insurer Auto & General has partnered up with Macquarie Mortgages to incorporate general insurance into home loans with a three-year price cap.
Borrowers will now be able to include building, building and contents, and landlord insurance in their mortgage application.
Premium costs will be capped for the first three years of their loan if borrowers don’t claim on their policy and their situation remains unchanged (no changes to policy details and no claim made on the policy).
In addition to the cap, the insured value will be indexed in line with rising building and contents replacement costs. Only one application process is involved, no additional paperwork is required and the risk of delayed settlement due to an outstanding Certificate of Currency is reduced.
The approval process for the mortgage and general insurance package is streamlined for both brokers and consumers, with one central point of contact. Borrowers will be able to choose from monthly or annual payments adding increased flexibility.
The deal builds on the relationship of the two companies, in which Macquarie is an authorised representative of A&G.
The insurer told Insurance Business the deal will not adversely impact its relationship with general insurance brokers.
“Auto and General’s Insurance brokers will continue to receive the great products and services that Auto & General has always delivered,” James Lilley, director of partnerships at Auto & General, said. “We always look to support and deliver outstanding individual and group services in our relationships with brokers.”
Ram Kangatharan, CEO of Auto & General, added: “It’s been a pleasure to work with Macquarie and create an integrated, tailored insurance product which we believe will not only meet customer needs but enhance their journey.”
James Casey, head of Macquarie mortgages product, said the inclusion of a general insurance option in the Macquarie mortgage package would provide a more “coherent and convenient experience” for mortgage brokers and their clients.
